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Credit Card Guidelines and Information
In this section, you will find information about your credit score or rating.  You may think that your credit score is high, but until you actually see the rating from one of the "big three" credit scoring agencies, you may be way off the mark.  There are several things that people do that actually lowers their credit score unnecessarily (like cancel unused credit cards).  More on that later. But for now, below are some general credit score guidelines.
 
What is a credit report and credit score?

A credit report is a report containing information about your identity, credit relationships, some court actions, consumers statements and previous inquiries into that file.  All this information is associated with your Social Security Number.  Credit reports are compiled by agencies (also known as "credit bureaus") that gather information about your credit relationships.  Currently, there are three major credit bureaus.

Credit "scoring" is a system lenders use to help determine whether to give you credit (car loans, credit cards, home mortgages, etc.) that is closely associated with your credit report.  Information about you and your credit experiences, such as your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt (exact dollar amount), and the age of your accounts is just some of the information that can be found on your credit report(s). 

Using a statistical program, creditors compare this information to the credit performance of consumers with similar profiles.  A credit scoring system (also known as your "credit score" or "FICO® Score") awards points for each factor that helps predict who is most likely to repay a debt.  The total number of points prospective helps lenders predict your creditworthiness, or in other words, how likely you are to repay a loan and make the payments when due.
 
What is your score?

A high credit score is often the key to obtaining the most attractive credit cards (a credit score over 700 will increase your likelihood of getting approved for the best credit card rates, benefits, etc.). A high credit score will also help you to obtain the best rates on other types of loans, as well as the lowest insurance rates.

The following credit score scale will give you an idea of how card issuers view your credit score. This is meant only as a general guide- each issuer has their own credit guidelines.

Credit Score Rating Example
                720 - 850 = Excellent
                680 - 719 = Very Good
                620 - 679 = Good
                580 - 619 = Fair
                351 - 579 = Poor
                000 - 350 = No Credit History
 
Excellent Credit Good Credit Fair Credit (Average) Poor Credit No Credit
Have had a U.S. loan or credit card for at least five years Have had a U.S. loan or credit card for at least three years Have had or currently have a U.S. loan or credit card Have defaulted on one or more U.S. loans or credit cards No Credit Activity
Have a credit card with a credit limit above $10,000 Have had a credit card with a credit limit above $5,000 Have had or currently have a credit card with a credit limit less than $5,000 Have had or currently have a credit card with a credit limit less than $1,000 No Credit Activity
Have never been more than 60 days late on a credit card, medical bill or loan payment Have never been more than 60 days late on a credit card, medical bill or loan payment Have been late on more than one credit card, medical bill, and/or loan payment in the last 6 months Have defaulted (not made any payments) on more than one credit card, medical bill or loan payment No Credit Activity
Have NEVER declared bankruptcy May have had a bankruptcy in the past May have had a bankruptcy in the past May have had a bankruptcy, forclosure, serious past due accounts or collections in the past No Credit Activity
 
Each card issuer has their own credit issuing guidelines - the below table is an example of another credit worthiness guideline chart:
 
Excellent Credit Very Good Credit Good Credit Fair Credit (Average) Poor Credit No Credit
5 trade credit lines (credit cards, auto loans, mortgages) each having been open for at least 24 months 5 trade credit lines (credit cards, auto loans, mortgages) have each been open for at least 24 months 5 trade credit lines (credit cards, auto loans, mortgages) have each been open for at least 24 months s 3 trade credit lines (credit cards, auto loans, mortgages) have each been open for at least 24 months One or more accounts have not been paid as agreed No Credit Activity
All accounts have been paid as agreed All accounts have been paid as agreed Most accounts have been paid as agreed, with only occasional late payments Most accounts have been paid as agreed, with only occasional late payments May have had a bankruptcy, foreclosure, serious past due accounts or collections No Credit Activity
No public records of bankruptcy, foreclosure, serious past due accounts, or collections within the last 10 years No public records of bankruptcy, foreclosure, serious past due accounts, or collections within the last 7 years No public records of bankruptcy, foreclosure, serious past due accounts, or collections within the last 10 years No public record of bankruptcy, foreclosure, serious past due accounts, or collections within the last few years May have significant credit balance relative to maximum available credit limit No Credit Activity
Low current credit balance relative to maximum available credit limit Low current credit balance relative to maximum available credit limit May have significant current credit balance relative to maximum available credit limit May have significant credit balance relative to maximum available credit limit   No Credit Activity
Minimum number of credit inquiries Minimum number of credit inquiries Several recent credit inquiries Several recent credit inquiries High number of recent credit inquiries No Credit Activity
 
What are the names of the three major credit bureaus?

It is a good idea (but not vitally important - just one report will give you good idea of where you stand) to obtain a copy of your credit report and credit score from each of the three major bureaus, since each bureau is independent and each bureau may list different information.  The three major bureaus are Equifax, Experian, and TransUnion. Thanks to a recently enacted federal law, all consumers are entitled to a free credit report on an annual basis from each of the three major credit bureaus.  Please note that all consumers still must pay for their credit score, but the 3 free credit score offers above may be of interest.
 
Should I obtain a copy of all three of my credit reports?

Since your credit reports are an integral part of the credit scoring systems that lenders use, it deems it absolutely necessary that you know that your credit reports are accurate before you submit any type of credit application (including credit cards).  In the least, you should know your FICO Score before trying to obtain any kind of credit (i.e., car loan, home mortgage, credit card, and lately, even obtaining an insurance policy or submitting a job application).  Thus, consumer advocacy groups recommend that you obtain a copy of your credit reports at least once a year to prevent fraud and to insure that your report is accurate.

There are actually three major national credit reporting bureaus or agencies and we recommend that you obtain your credit report and your credit score from EACH of the three major bureaus.  Since creditors (i.e. credit card companies, mortgage companies, etc.) do not report your credit history to the same bureaus, each bureau will often contain different information regarding your credit history.  For example, some creditors may report to one bureau, while other creditors may report to all three bureaus.  And unfortunately, we don't know ahead of time which one of the credit bureaus your creditor may is using (wouldn't that be nice to know - we will do some searching and keep you posted). 

Please note that each bureau will charge you up to $14.95 for your credit report and score.  Thanks to a recently enacted federal law, all consumers are entitled to a free credit report on an annual basis from each of the three major credit bureaus.  Please note that all consumers still must pay for their credit score, but the three free credit score offers below may be of interest.
 
How can I get my credit score for free?

Important Consumer Notes!  We are pleased to provide consumers with the following free credit score offer.  This following offer is on a "trial basis" (meaning as long as you cancel before the 7-day trial period ends, you won't billed for the monthly service charge).  Click on the offer for more information.

There are actually three major national credit reporting bureaus or agencies (Experian, Equifax and TransUnion), and this offer is from Experian.

Get a FREE copy of your credit report and score with your FREE 7-day Experian Triple Advantage trial