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The FICO score, which is a product of the Fair, Isaac, & Co., translates a person’s entire credit report into a three-digit number score. This score determines whether or not you are qualified to get a loan; and while many people are still not familiar with this, it is something that everyone should know about. This article will talk about how the credit score is computed and if there is a way to improve it.

In North America, all lending activities are recorded by three major companies – Equifax, Experian and Trans Union. This information then goes into making up the FICO score which is based upon a scale of between 300 and 850. This score is used by other companies in assessing your ability to pay back credit. Such companies may range from insurance to credit card companies and even now a days – potential employers.

The determination of the actual score is carried out as follows:
- The payment history of the consumer. This makes up over a third of the entire score. So, if for example a consumer has made some late payments to pay off credit or perhaps even defaulted on some payments then this will very much go against their record. If on the other hand the records show quite the opposite and all payments have been made in a timely manner, then the FICO score will reflect this.

* Existing debts are also considered, and this make up another one-third of the credit score. The ratio of current debt to existing available credit is considered and this will reflect on the person’s score. Credit cards that have been maxed out are often very bad and it will definitely give a bad reflection of a person’s paying capacity.

* Length of credit history, type of credit and recent credit applications are all taken into account to make up the final 35% of the FICO score. Those who have used credit for a long period of time will be at an advantage here. Type of credit is assessed in that, if the consumer is to have a variety of different credit – house loan, car loan and a credit card, for example, then this would appear better than credit cards alone. Recent credit applications relates to if the consumer has made a number of recent requests for credit. This may appear that they are somewhat desperate for money and is not necessarly looked fondly upon with regards the FICO scoring.

All these help determine your credit score and this information can help you maintain better credit standing so that you may be a better candidate for a loan. Remember that should the need arise you need to be able keep a good score so that you can qualify for a loan; and this can only be accomplished if you maintain your credit standing.

Learn more about credit card help and a debt consolidation program to suit your needs.

0% interest credit cards – what’s in it for the card company you may be wondering? Good question really.
After all, no card company is going to be offering up to it’s customer base something for nothing now, are
they. So, let’s check out what’s what here.

Card companies offer 0% interest credit cards to entice new customers, either from other credit card companies or those that are new into the credit arena. After all, the thought of having a 0% interest credit card is rather nice, don’t you agree?

However, do keep in mind that statistics show a general trend where consumers who take out one of the 0% interest credit cards offers tend not to pay the full balance off at the end of the interest free period. Thus, it can work out in the longer run that what initially was a good idea to take the card is actually an expensive option due to the potential high interest rates after the zero interest rate period has concluded.

On the other hand, you have to ask yourself what’s in it for you? Obvious really. If you stick to the rules and abide by the terms and conditions you have yourself what can be a very useful addition to any financial situation.

If you are going to transfer a balance from another card then do make sure that if there is a fee involved
that the fee does not wipe out all of the benefits of the interest free period. It’s a wise move to transfer only the amount you can pay off before the interest free period expires, unless the new card has a lower interest rate than the previous card anyhow.

Use the card wisely and it will benefit you in the short to mid-term. With most types of card if we are to misuse them we pay a fairly heavy price. It is no different for 0% interest credit cards.

Find out about the terms and conditions in the first place and then make sure to stick within the rules. Take good care of your card spending and your card will be a large help to you in return.

Click the link for further details of low interest and 0% interest credit cards. Or if you need a business credit card offer, you can find this too.