The rule of thumb has been that you should keep your credit card debt ratio down to 30% of your available credit in order to maintain the highest credit scores. Now that 65% of all lenders have tightened up their requirements, credit experts are recommending a limit of 10%.

This credit crunch is expected to get even tighter, as reported in the July Senior Loan Officer Opinion Survey on Bank Lending Practices.

Maintaining a 10% ceiling will become harder to do, as many credit card issuers are lowering credit limits “just because” they want to. Few people read the fine print in their credit card agreements, but most do contain clauses that let your creditors reduce your limits and raise your interest any time they choose to do so.

Since part of your FICO score depends upon the ratio of debt to available credit, when card issuers reduce your credit limit, your scores will drop. In addition, when they increase your interest rates, paying down your balance becomes more difficult.

Work on it now, while your interest rate is still low, and your limit still high. If you wait, your credit score could become the next victim of their arbitrary decisions.

In spite of our government urging us to spend in order to “stimulate the economy,” it’s time now to cut back on spending and increase repayment. And many Americans have done just that.

When the Economic Stimulus Checks were mailed this year people were expected to rush out and buy things. In fact, people on assistance programs were required to either “spend it or lose it.” But surveys showed that only 14% of all Americans did that. The rest of us either paid bills or put it into savings – showing that we do have some good sense.

Still, most families and individuals can find ways to cut back a bit more and pay down those credit cards.

The recently lowered gasoline prices should help a great deal! After many months of double and triple gas costs, we’ve gotten used to the expense. Anyone who did a lot of driving should take that “extra” money and apply it to credit card debt.

You may not feel concerned about this, because you have no need for credit at the moment. But should you suddenly need to borrow money for an emergency, need to relocate to a home in a new community, or want a new car, you’ll realize how important your credit score is to your financial options.

Lenders are demanding higher FICO scores, charging premiums to grant loans, and generally making it tougher for average citizens to get the money they need – when they need it.

Your defense is to beef up your Credit Score to the highest possible level. The first step is to get a copy of your credit report so you know how you stand. The second is to get that credit card debt paid down as quickly as possible.

CreditScoreQuick.com