In the world of high competition credit card plays an important role. In this case, the issuer lends money to the user which is to be paid later to the merchant. Credit Cards have some exciting features. One of the features is Credit Score that increases the enthusiasm of the user to use the card frequently.

In general terms good credit score is a number generated by a mathematical procedure – algorithm. This mathematical procedure works on the information provided in your credit details to contrast the same information with another people using some standard contrast scale to derive credit score.

Generally individuals with FICO scores above 750 are considered as an Excellent Credit Score. Of course there is no regularity in black and white telling what the good score is; it is believed that the normal average borrower is having credit score in the range of 600-700.Credit scores are actually based upon five major criteria.

Payment History: This account for 35% of your total credit score. Outstanding Balances: This account for 30% of your total credit score. How long you have had credit is the duration for which you have credit, the greater will result in more score. This accounts for 15 % of your total credit score. New Credit: The opening of several credit accounts in a short period of time halters the credit scoring of an individual and accounting for 10 % of the credit score. Types of Credits in Use – This account for 10 % of your score and considering your mix of credit types and the total number of accounts you have.

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