The American consumer has become overly dependent on easy credit. Credit cards afford many a prolifigate lifestyle that is not reflective of the ground realities. The American nation has truly become a credit card nation, where consumers pursue spendthrift policies not reflective of their true financial realities. Currently, in Davos, Switzerland, the World Economic Forum (WEF) 2008 is taking place. At the WEF world leaders, business leaders, entrepreneurs, and many more share ideas and discuss solutions for economic progress in conjunction with social development. This week, at the WEF, the Chinese economist Cheng Swei of the National People’s Congress commented, “Asians…save today’s money for tomorrow. Americans spend tomorrow’s money today.” The commentary by Swei couldn’t have been more accurate. Americans have a negative national savings rate and an average household credit card debt of $8,500. As a result of increasing credit use and vanishing personal savings, the national dependence on credit has had many ill effects, including deterioration in credit ratings and credit scores.

Your credit history keeps a tab of when you borrow money. The credit lender sends your credit information to a credit bureau that keeps track of how well you conduct credit debt management. Based on your credit report information, the credit bureau arrives at a credit score buttressed by five major factors: 1. your past credit history, 2. your current state of debt, 3. how long your credit has been in use, 4. the types of credit available to you, and 5. your pursuit of new credit.

The five factors affecting your credit don’t receive an equal weighting. This is how credit bureaus evaluate your credit weighting:

5% – Your pursuit of new credit

Hence, your credit history affects your credit rating and credit scores the most. The biggest factor that can increase your credit rating is your ability to pay off your debts quickly. Furthermore, keeping low levels of indebtedness, a long credit history, and abstaining from applying frequently for other credit cards can help . Here are the top ten ways to improve your credit rating:

1. Make timely credit card payments with the correct amount

2. Know your credit card issuers. Avoid credit from financing companies

3. Maintain a low credit-debt ratio, ideally around 30%

4. Monitor your credit report annually. Dispute any errors with the credit bureau

5. Don’t cancel your unused cards. Keep them in a shoe box, don’t use them.

6. Be patient, improving your credit rating takes time. Just follow these tips and you’ll be fine.

is not an overnight process. In addition to following the above tips, some of you may need the help of a reputable debt management, debt counseling, or credit counseling agency to help you navigate out of the waters of credit disrepair.