In addition to our credit rating, there is also a credit score (or FICO score) which is determined by several factors.  Scores range from 300 to 850 and higher are best.  Your ability to obtain a loan may well be determined by your credit score.  In addition, lower interest rates are usually obtained with your score is high.

The score is primarily ranked based on the following five categories:  Amount owed, your payment history, types of credit you’ve used, any new credit, and the length of time of your credit’s history.

The lenders all rate you as time goes on based on how you pay back what you owe.  If you have a large amount of debt through many credit cards, your score is lowered based on the fact you appear to be overextended.