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Don't max out your credit cards or take on more debt than you can handle. It's generally a good idea to keep your credit utilization below 30%.

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There are several advantages to getting a loan from a bank. This can make a revolving credit line a more cost-effective option than a traditional loan, where the bad borrower pays interest on the entire loan amount regardless of whether they use all of the money. Work with a credit counselor: If you're having trouble managing your credit, you might consider working with a credit counselor.