One of the basics of getting the most competitive charge card account deal in the market is to ensure you have the best credit record possible. Few of us are lucky enough to be earning a six-figure salary, and many consumers are likely to have other financial undertakings that a potential lender will want to take into account. None of this, however, should preclude you from getting a top bracket credit rating. Getting a credit score of 700 may be beyond some consumers, but lifting your credit rating to a point at which lenders will furnish you with some of their best deals is not an insurmountable task.

It can be a stressful time applying for a new line of credit. Many consumers get upset when applying for a new credit card account when they find out their credit rating is low, and they have poor credit.

A lower credit rating can impact the amount of cash that financial institutions will lend you. It can also impact on the rate of interest at which you borrow. In some cases, the difference between having an excellent credit rating and a poor one could be getting a 0% deal on your charge card account, and paying an APR that touches 30%. Sometimes financial institutions won?t even lend you a dime, based on a low credit score.

A variety of factors can impact on your FICO rating. Generally speaking, lenders love stability more than anything else. Paying amounts owed on time is but one of many variables. It could be that you? I’ve lived in more than one address over the preceding three years; or having borrowings with a variety of institutions. It could even be down to the fact that you?ve got too much credit already at your disposal.

But just what goes into your FICO rating? A report by the analytics experts Fair Issac recently broke credit scoring down into five categories and assessed their importance on the final rating.

Most important was how you had paid you bills in the past with the most emphasis on recent activity. Naturally, paying all your bills on time is good; paying them consistently late is bad. Having accounts that were sent to collection agencies is even worse, though nowhere near as bad as declaring bankruptcy. Paying your bills in a timely and consistent manner contributed to 35 percent of the score.

Next most important was the amount of cash you owe and the amount of available credit at your disposal. The assessment of outstanding debt fell into several categories, and included credit card accounts, car loans, mortgages, home equity lines, and so on. Also given consideration was the total amount of credit available. If a customer has 10 charge card accounts that each have $10,000 credit limits, that totals $100,000 of available credit. Generally speaking, consumers who have a lot of credit available tend to use it. This makes them a less attractive credit risk. This amounts to 30 per cent of the total credit rating.

Also impacting on FICO scores is the length of credit history (15 percent). The longer a customer has had credit ? particularly if it’s with the same financial institution ? the more points they get.

The mix of credit contributes 10 percent to the credit rating. Customers with the best scores have a mix of both revolving credit, such as charge card accounts, and installment credit, such as mortgages and car loans. Statistically, consumers with a richer variety of experiences are better credit risks. As far as banks and charge card companies are concerned, they know how to handle money.

The last important factor taken into consideration is new credit applications (10 percent). If you?ve applied for several lines of credit in the past few months this will negatively impact your FICO score.

The antidotes to this are simple. Pay your bills in a timely manner, particularly in the months leading up to an application. Close unused retail store cards, credit cards and old bank accounts with overdraft facilities. Maintain long-standing and healthy arrangements with banks and other lenders. Don?t apply for a stack of charge cards, loans and so on, unless you?re absolutely sure it?s the right product for you. It goes without saying that you shouldn’t apply for a credit line unless you use it.

There?s a sixth factor that can contribute enormously to a negative credit rating. In 2001 it became possible for customers to get their own credit rating in exchange for a small fee. In the past, prospective lenders were able to keep this score hidden, and many unscrupulous institutions used this knowledge to charge a higher interest rate on credit. By being aware of your credit rating lenders can’t lie and say your score was low and charge higher APR on your credit card.

More importantly, it?s vital that you get rid of black marks on your credit rating. Errors unfortunately happen all the time, and erroneous reports of missed payments, referrals to debt collectors and even bankruptcies can scupper your chances of getting a low rate of interest and even a charge card account altogether. Query everything and haggle with credit reference agencies so that only the information that is listed on your credit history that should be there, is there.

You can find out your credit history by applying to one of several companies. Many offer an online service and can furnish you with the information both quickly and cheaply. Equifax, Truecredit and Consumerinfo are some of the best such providers.

Patience is the key to getting a great credit rating ? and the best credit deals. You?re never going to make the jump from having a FICO rating of 500 to one of 700 overnight, but by implementing easy to follow and practical strategies, you can quite easily leverage your FICO rating to a rating that is respected by all concerned.

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