“The current Credit Rating System needs to be abolished in order to get the U.S. real estate market and overall economy back on positive tracks,” says Phil Mitsch, a real estate examiner. So therefore, he adds, understanding how the Credit Rating System works will give millions of Americans a substantial financial and psychological advantage over it, saving Americans billions of dollars a year. Below are 10 of the 35 of secrets to higher credit scores Mitsch shares as listed on Examiner.com.

1) Higher Credit Rating Scores = lower interest rates for consumers.
2) Credit Rating Scores range from 300 to 850
Below 599 is considered bad
600 to 649 is considered poor
650 to 699 is considered fair
700 to 749 is considered good
Over 750 is considered excellent
3) The formula used to determine Credit Rating Score
4) Get a copy of your 3 Credit Reports
5) Review your credit reports for accuracy
6) Correct personal information errors
7) Correct negative information errors
File disputes to have questionable negative information removed
9) Have collection agencies delete collection information when paid
10) Compare credit card companies

According to a recent Experian National Score Index study, about 14 percent of US consumers have more than 10 credit cards, and one in seven use at least half of their available credit. The study also found that US consumers have an average of four credit cards, and just over half–51 percent–have at least two credit cards.

So how many is too many? 888-MyMoney.net states that the guideline is to maintain only the number of cards that you can handle responsibly, and that two credit cards are better than one in unfortunate situations such as cards being stolen. A backup card (with a zero balance) will provide some credit while you’re waiting for the stolen card(s) to be replaced. But remember, maxing out any of your cards is always a no-no.

A 2009 Sallie Mae study reported that the average college graduate carried about four credit cards by the time he earned his degree. That’s a hefty amount of plastic for a recent grad indeed, which proves that plastic is quite attractive to young adults.

Reporter Steve Rosen shares on Recordnet.com the story of a recent grad who already had a credit card, inquired if she should find another deal or stick with her one card after being denied a credit application for an airlines card. The advice recent graduates should consider for just-because credit cards: Improve your chances of obtaining a second card by building up a lengthier repayment history on the first card and, of course, invest the time to check your credit report to make sure there are no errors that can lower your credit score.

One of the best ways to save big money on a big loan is to first do your homework and know your own credit standing. This is important because raising your credit score by as little as 40 points could qualify you for a lower interest on a home mortgage, auto, student, or personal loan. Sounds worth it right?

The first step would be to pull your report to get a glimpse at what lenders will see and to correct any lingering errors. Second, you want to make sure you’ve established some credit history. And third, eliminate collections by paying your bills on time because payment history accounts for 35% of your credit score. These are just a few, take a glance at the other ways you can raise your fico score on FoxBusiness.com.

Well that depends on several scenarios, but you should start by asking yourself a rather simple financial question: Which number is greater? The return on your investment or the interest you are paying. For example, a Forbes.com article asks if you should invest $10,000 that you owe in credit debt into a guaranteed 1% interest from your bank or invest it into a possible 30% return from a small business endeavor?

The bottom line is that there are a lot of alternatives to consider such as the cost of the debt and the downside risks or over a given time frame. Moreover, there are also emotional points to consider as well such as how a particular outcome will make you feel. So when trying to decide whether or not you should pay off credit debt or invest, try to make your decisions with your head and your heart for the likelihood of a winning decision.

The widening of the spread between rewards and non-rewards cards makes this a good time to re-evaluate the relative benefits of rewards credit cards. FoxBusiness.com reports that non-reward credit card offers declined to 14.72 percent from their previous level of 14.88 percent. Meanwhile, reward credit card offers rose to 17.27 percent from 17.09 percent.

Nonetheless, credit card customers who carry a balance should try to quantify how much they are likely to be able to take advantage of rewards programs, and compare this amount with the additional interest they are likely to pay on rewards cards to see if worth the extra percentages.

There is a plastic ceiling to some credit cards that will be denied to you no matter how high your credit scores are. They are pretty much invitation-only cards such as the American Express Black card and Chase Palladium card. Both cards are reserved for existing big-spender cardholders. These cards have what is a “plunk factor.” The Centurion, for instance, is made of titanium, while the Palladium is made of the precious metal that shares its name and has the cardholder’s signature permanently etched into it.

But behold, there are plenty of top-tier cards listed on MSN Money that you don’t need to be rich and/or famous to snag that offer stellar rewards for average consumers.

Airline industry woes have made it tougher to hand out generous travel rewards, but at the same time, these challenging times have stimulated creativity in the marketing of airline cards. Also, airlines can at least try to improve the offerings on their own airline credit cards in an attempt to keep their passengers flying with them such as with United and Southwest.

One thing’s for sure, airline travel is here to stay, and airlines and credit cards are likely to want to reward their customers for their persistence. For example, over the past year, many credit cards have dropped the foreign transaction fee. Take a look at some of the best airline credit card perks on FoxBusiness.com.

According to the U.S. Census Bureau, American shoppers spent $7.4 billion in family clothing stores to get ready for the 2010 back-to-school season. Families spent another $2.2 billion in bookstores during the same period. It is averaged that an American family of four will spend about $800 to get their kids ready for a new semester, according to American Express’ Spending & Saving Tracker study.

One of the best credit cards for back-to-school shopping may be the solution to spreading out parts of those costs over the next few months. A few tips to consider for choosing the best deal is to compare offers based on their annual fees, reward structures, and their partner relationships and to look beyond any short-term bonuses to determine how a card can get you the best long-term rewards.

Forty to 70 percent of transactions, depending on the region, are made with rewards cards, according to Phil Hinke, founder and president of MerchantFeeSavers, a company that helps small business owners understand processing fees. However, it turns out that it costs a merchant more each time a consumer pays with a rewards card than when a consumer pay with a basic credit card. And that hurts the bottom line of retailers, because reward cards make up the bulk of credit card transactions.

So that small mom-and-pop retailer doesn’t have much love for your rewards card because they are footing the bill for those free airline tickets and other perks. The “small business owner is paying more — not only to use a rewards card — but just to use plastic in general,” and they may actually be getting a worse rate than larger companies.

Rewards cards holders are a valuable group of spenders though, so retailers have the option of trying to steer customers to other forms of payment, or they can be happy the rewards card user is most likely also spending more money.