Credit Card Resources - Page 4:

CreditCardAssist.com (Page 4) maintains a credit card and financial resources site directory where qualified sites can exchange links, add a URL to this page and partner with us.

When utilizing any credit card, be careful not to overextend the credit limit on any of your credit card accounts, keeping it below 75% of the overall credit limit.

An even more conservative credit ceiling would be a maximum spending limit of 50% of your overall account credit limit.

There are several reasons for this suggestion. First of all, by maxing out or even approaching the maximum credit limit on your account, you can adversely affect your credit rating with the major credit bureaus.

Additional Credit Resource Pages:     Page 1    Page 2    Page 3    Page 4    Page 5

Many people hear the term "credit score" repeated over and over, yet are still unsure of exactly what a credit score is. If you are among those feeling confused about credit scores, you are not alone. Fortunately, credit scores are not as abstract and difficult to understand as you may think.

Why is My Credit Score Important?

Your credit score is important because it is a number that represents your reliability and responsibility when it comes to repaying debt. The higher your number, the better your score. When it comes to deciding whether or not they will issue you a loan, banks and other financial institutions first take a look at your credit score. Some employers also look at credit scores when deciding whether or not they will higher you because a lower score places you in a higher risk category for employee theft. In addition, businesses such as phone companies also consider your credit score when deciding whether or not they will do business with you.

A low credit score can cause you to be denied loans, insurance, services, and even employment. When you do receive loan, you will most likely be charged a higher interest rate then someone with a good credit score. In addition, certain businesses may require a larger security deposit before they will do business with you if you have a low credit score.

What Does "Fico" Mean?

Sometimes, the terms credit score and Fico are used interchangeably. Fico is actually an acronym for "Fair Isaac Company," which is the name of the company that developed the special software used by the major credit reporting agencies to determine credit scores. This software actually utilizes a somewhat complicated and very thorough algorithm to determine individual credit scores.

Do I Have a Credit Score?

Probably. If you are of an adult age, you most likely have a credit score. Even if you have never opened a bank account or taken out a loan of any kind, the major credit bureaus will be able to develop a score if asked by a business or lending institution. You may not be in the system yet, though, since no one has inquired about your financial history in the past or sent information to the bureaus.

How is My Credit Score Determined?

The exact formula used with the Fico software is an industry secret, but there are some basic factors that are taken under consideration. Approximately 35% of your score is based on your history in completing credit payments on time. Another 30% is determined by the amount of debt you are in as compared to your available credit. 15% of your credit score is defined by how old your open credit lines are. The older you open credit lines the better because this demonstrates a longer credit history. 10% of your score is based on how often you have applied for a new card and 10% is a potpourri of factors, such as the type of credit lines you have open.