Finally, if you have a credit card, take following precautions:

Never lend it to anyone.

Never sign a blank charge slip. Draw lines through blank spaces on charge slips above total so amount can't be changed.

Never put your account number on outside of an envelope or on a postcard.

Always be cautious about disclosing your account number on telephone unless you know person you're dealing with represents a reputable company.

Always carry only cards you anticipate using to prevent possible loss or theft of all your cards or identification.

Always report lost or stolen credit cards to card issuers as soon as possible.

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Credit scoring is used because it is based on real data and statistics, so it usually is more reliable than subjective or judgmental methods. It treats all applicants objectively. Judgmental methods typically rely on criteria that are not systematically tested and can vary when applied by different individuals. Although you may think such a system is arbitrary or impersonal, it can help make decisions faster, more accurately, and more impartially than individuals when it is properly designed.

A significant factor in determining your credit score is your payment history. It is likely that your score will be affected negatively if you have paid bills late, had an account referred to collections, or declared bankruptcy, if that history is reflected on your credit report.

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