Credit Card Rules

Paying on time and staying within your credit limit may not be enough to maintain your interest rate and staying in the good graces of you credit card companies.

At this point in time the aggrement you had can change at anytime for any reason. The economy,marketing conditions and business strategies as reasons a consumers rate might change.

Some lenders can reduce a credit card limits just because there is late payments,decline in credit score,and balances that are to close to the credit limit.

Your borrowing power is restricted by your credit card being lowered. For example if your have $1,000 credit line and you charge $ 400.00 if you creditors decide to lower your credit limits to 500.00 suddenly without spending another dime you have used 80% percent of your available credit.

FICO score what is it ?

FICO stands for Fair Isaac Credit Operations. Now what does this mean to you ? It determines you credit score which in turns allows you to get credit at the interest rate set by the creditor.


A score can range from 0-900.Some places even say 0-850 . The most acceptable score is above 700.If it falls below 700 you may still get the credit but you will pay a higher interest rate.

How are your scores determined ? They are grouped into 5 categories. Each category make up a percentage of your score.

35 % Payment History
30% Amounts Owed
15% Length of Credit History
10 % Types of Credit Used
10 % New Credit

100 = Your Credit Score