According to Bloomberg News columnist John F. Wasik, a credit score higher than 750 typically means you will get the lowest rates on purchases like mortgages and vehicles. Anything less than that will likely mean you’ll have to pay higher interest rates or get approved for less than the best terms.

myFICO(R), the consumer division of Fair Isaac, reports that the median credit score in the United States. is 723 meaning 50 of Americans have a score below 723. When factoring in the number of people with scores between 723 and 750, most people in the U.S. have scores that are less than ideal.

And increased finance rates are not the only effect of a less than idea. The credit crisis has caused banks and other lenders to become much more conservative with their practices. Just a few years ago, people with below 600 credit scores could still get approved for financing, even if they were restricted to non-traditional mortgage loans and high interest credit cards. Today, lenders are no longer willing to extend credit to higher risk applicants. Many people with bad credit are no longer able to get approved for financing because of their low scores.

Fortunately for those who have scores with room for improvement, there is hope. An increasing number of Americans are discovering steps they can take to legally fix up their credit.

Become one of the thousands who fixed their credit reports

The consumer credit reporting system is not perfect. Credit reporting errors, math based assumptions, and inconsequential data all contribute to a system that makes it look like trustworthy borrowers who can be counted on to repay their debts are unworthy of credit.

If you are one of the many Americans whose credit reports are making you look like a worse risk than you truly are, you may be able to increase your score by fixing your credit reports.

The Fair Credit Reporting Act (FCRA) provides you with the right to dispute any items in your credit reports you feel may be inaccurate, untimely, misleading, biased, incomplete or unverifiable (“questionable”). Put simply, you have the right to question the negative information in your credit reports you feel are giving people who access them an inaccurate or incomplete impression of your credit worthiness.

Online mortgage loans are both quick and convenient. The application can be completed in the privacy of your home, and it typically takes less time to get a reply from the lender. Shopping for a purchase loan, cash-out refinance or home equity loan involves more than just looking at loan amounts and advertised interest rates. Follow these tips, and save money:

1. Clean up your credit. Uncorrected errors on your credit reports will lower your FICO scores. According to myfico.com, your three FICO scores affect both how much and what loan terms (interest rate, etc.) lenders will offer you. Example: a person with FICO scores of 760 or better will pay $231 less per month for a $216,000 30-year, fixed-rate mortgage than a person with FICO scores below 620.

2. Shorter term loans can you save money in the long run, but the monthly payments are higher. However, you could get also get a 30-year loan and pay a little extra towards your principal each month.

3. Shop for the lowest annual percentage rate (APR) and closing costs. The APR is the yearly cost of a mortgage, including interest, mortgage insurance (if LTV is less than 80%), and origination fee (points), expressed as a percentage. Closing costs include the appraisal, recording fees, attorney or notary fees, etc.

4 Fixed-rate mortgages are mortgages where the interest rate stays the same for the duration of the loans. ARMs are mortgages where interest rates change after a term (usually of 3 or 5 years). ARM rates are based on one of several prime rate indices including, LIBOR, MTA and COFI. An ARM could save you money if you plan on selling the house or refinancing soon.

5. Make sure your loan doesn’t carry a pre-payment penalty, or it will cost quite a bit extra to refinance later on.

6 Look at loan features as well as rates. Example: option ARMs offer flexible repayment terms that allow you to pay a minimum payment, interest only, principal and interest and even pay the loan off early. These and interest-only loans are best for people who are more interested in cash flow than equity.

7. If you plan on keeping your house for more than three years, you could pay points for a lower rate. Remember to compare your interest savings versus the points before signing.