Most of us use credit card offers, but sometimes we don't really think how and in what way they influence our lives. One of the aspects influenced by credit card offers is your credit score. Did you know that only 40% of Americans are aware what exactly the credit score is and why it is important?

Other 60% of population of our country don't know or just have a slight knowledge of credit score. If you are one of them, you should find out more about credit score and factors that affect it.

Did you know that credit reporting was created more than 100 years ago? It may sound unbelievable, but that's true. Traders used to gather and share the financial information about their customers.

In 1960 consumers got the legal right to examine their credit report and revise the misleading information. Finally in 1971, the consumers were given the right to view and correct their credit records by enacting the Fair Credit Reporting Act.

In 1989 Equifax together with Fair Isaac and Company created a credit scoring system - a summary of your credit history called "FICO".

There are several factors that affect your credit score.

• First of all it is your credit history. Your credit score and credit history are connected. If you have a good credit history, then you have a good credit score and visa versa. It's strange, but it's a fact- 30 days late credit card payment will make more harm to your credit score than a bankruptcy six years ago!

• Secondly, your outstanding debt. If your credit limit amount is close to the amount you owe on a card, your credit score will be affected negatively. A high limit on one card is worth than a low balance on two.
• Thirdly, your credit history length. If your credit accounts have been open for a long time, it will positively influence your credit score.
• Then, recent enquiries on your credit history. If you have recently applied for new credit cards, it may damage your credit score. The specialists advise not to apply for any credit cards if you are in a process of approval.

• And finally the types of credit you are using. Remember that loans from financial companies will negatively affect your credit score.

There are 3 credit reporting agencies in the United States: TransUnion, Equifax and Experian. The national American credit score is around 650.

If your credit score is not so perfect, there are ways to improve it.

• Make all your payments on time.

My friend Mike once didn't have a chance to pay his credit card bill on time, but he didn't want to spoil his credit score, so he found a solution. Mike called to the credit card company and asked for payment schedule. He found a perfect time to pay his bills- right after he gets his pay check!

• Don't close old inactive credit card accounts. It will tell about your positive feature of character - you are a responsible consumer!
• Maintain low balances on plastics you use. Find the best credit card offer and determine how you are planning to use it.
• Get your credit report annually- that's what my next door neighbor Ronda does. Every year she gets the copy of her credit report and analyzes her mistakes in credit use. Ronda makes a list of what she has to improve. She says it is very helpful. I tried to do it myself and I advise this method to everyone!

Your credit score plays a great role in your credit availability, so try your best to keep it high!

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