Have you heard it said that you may only borrow money when you have money?

While this isn't completely accurate, most creditors hold the view that 'only good credit need apply.'

What is 'good credit' in lenders' eyes? It resides in your report

and becomes a part of your FICO score.

Here are the things that will determine your FICO rating:

1. The length of your credit history. Lenders want to know that you can be counted on to pay on time, so you need to have enough history to accurately portray how you manage finances. Time is key here. Even if you manage your credit perfectly but your account is only a year old, your good practices are not likely to get your score into the heights right away. Keep it up for a few years, though, and you will hit the big numbers.

2. Your payment record. Your payment history comprises approximately 35% of your score. Lenders want to see if you have a tendency to miss payments, or have frequently paid late. To get good credit, you need to show a record of on-time payments every payment period for an extended period of time, with few (if any) missed payments.

3. Types of credit. Examples of different types of credit

including credit cards, mortgages, and installment financing

such as car and student loans. If the credit you most often

use is from credit cards and other high-interest sources of

financing, your credit score is likely to be lower than someone

with the same level of debt and credit/payment history who uses

different types of credit.

4. The balances on all accounts. Do you carry many accounts with balances near your limit? Good credit is hard to get if you are carrying high amounts on a variety of accounts. On the other hand, is most of your debt confined to one or two accounts, such as mortgage and car payments? People with good credit usually have only one or two active accounts.

5. Recent credit history. This factor focuses on your most recent credit activities. This includes newly opened accounts as well as how you are managing your credit. It even considers any recent requests you have made for new credit, including those "no payments for six months" deals. Generally speaking, to get a good credit rating, do not open accounts on a frequent basis and make sure you have a consistent and long history of accounts in good standing. Keep in mind that if you open several new accounts at one time, your credit score may be adversely impacted for a while.

While there are lending institutions that will lend to individuals or businesses with very low credit scores (known as 'bad credit loans'), these financing arrangements usually come with very high interest rates and exorbitant fees that can end up costing much more than the original purchase. Even if your credit score is 'so-so' rather than low, you are still likely to end up paying a lot more than a person with very good credit. Taking the steps to get and maintain a high score, therefore, is worth the effort.

How do you find out what your credit score is and begin to improve it if it isn't perfect? Get your free copy of your credit report from AnnualCreditReport.com.

Go over your report closely and file a dispute notice with the credit bureau if you spot any mistakes but be ready to give them documentation to support your claim.

Make use of automatic payment plans through your bank, creditors, or third-party bill paying services to make sure that your payments process on time.

Don't open credit accounts that you aren't going to use, and don't open or close accounts often.

Focus on good management of the credit you already have. These strategies will help to raise your FICO score, and give you a shot at the best deals from creditors.