Read in depth about credit scores from the people who invented the formula.









Over age 62?














Divorce and credit.














"Blocking"-- the cause of those embarrassing moments.

How do credit card providers score my credit history for a credit card?
Your credit worthiness is evaluated by providers using a scoring method called "FICO." Just how this method works was an industry secret until recently.

Information about you and your credit experiences such as your bill-paying history, the number and type of accounts you have, late payments, collection actions, outstanding debt and the age of your accounts is collected from your credit application and your credit report. Using the FICO program a credit score helps predict how creditworthy you are-- that is, how likely it is that you will repay a loan and make the payments when due.

Our Articles page has a good article on how your credit gets rated. And you can read the complete report about how your FICO score is determined, and use that information to improve or maintain your rating, at www.fairisaac.com.






I'm almost ready to retire. How does my age (68) affect my credit rating?
Under the federal Equal Credit Opportunity Act (ECOA), it's against the law for a creditor to deny you credit or terminate existing credit simply because of your age.

But while a creditor cannot take your age directly into account, a creditor may consider age as it relates to certain elements of creditworthiness. For example, a creditor could consider whether you're close to retirement age and a lower income. You can find more information from the FTC at their article, "Getting Credit when Your'e over 62."


I am contemplating divorce. What will happen to all our credit card and charge accounts? Both our names are on them.
By law, a creditor cannot close a joint account because of a change in marital status, but can do so at the request of either spouse. A creditor, however, does not have to change joint accounts to individual accounts. The creditor can require you to reapply for credit on an individual basis and then, based on your new application, extend or deny you credit. In the case of a mortgage or home equity loan, a lender is likely to require refinancing to remove a spouse from the obligation.


What is credit card blocking?
Maybe you've been embarrassed in front of friends or business acquaintances when you were declined for a charge. Blocking may have been the reason.

When you use a credit or charge card to check into a hotel or rent a car, the clerk usually contacts the company that issued your card to give an estimated total. If the transaction is approved, your available credit is reduced by this amount. That's a "block."

Here's how it works: Suppose you use a credit card when you check into a $100-a-night hotel for five nights. At least $500 would be blocked. In addition, hotels and rental car companies sometimes include anticipated charges for "incidentals" like food, beverages, or gasoline. These amounts can vary widely among merchants.

If you pay your bill with the same card you used when you checked in, the final charge probably will replace the block in a day or two. However, if you pay your bill with a different card, or with cash or a check, the company that issued the card you used at check-in might hold the block for up to 15 days after you’ve checked out. That's because they weren't notified of the final charge and didn't know you had paid another way.

Get a more thorough discussion at the FTC's article on blocking.