Five years ago it seemed that any schmuck could walk into a bank with a couple of pay stubs and walk out with a mortgage.
Thanks to the mortgage gods, people with bad credit were obtaining loans that were beyond their financial means.
Today, thanks to the ineptitude of too many financial institutions and processes to mention, that simply isn't the case.
If you're looking to score a big-ticket item, such as a house or car, you're going to have to play the typical song and dance with your lender.
This little ritual can be made simple by one important phrase: credit management.
Determining your Credit Rating Learning your credit rating is as simple as purchasing a copy of your credit report.
All of the major credit bureaus (TransUnion, Equifax, and Experian) offer products that enable consumers to obtain a copy of their credit report, including their FICO score, for a small fee (generally under $20).
This credit report is typically very in-depth, providing a glimpse at what lenders see when you make a credit application.

Your FICO score is a numerical value (between 300 and 850) that effectively summarizes your credibility to a potential creditor.
The higher your score, the less of a risk you appear to be to a creditor.
The typical North American has a FICO score of 720.

Things such as current loans, payment history, and long-term payment patterns are detailed in your credit report.
This is critical for when a lender determines your credibility (assuming they bothered to look past your FICO score).
Key Factors Lender Look for When Assessing Your Credit Your FICO score is likely respectable (anything over 650 is usually enough to get you qualified for a loan).
However, you may still be denied a loan for other reasons.
Unfortunately, each lender has their own criteria about what makes a particular applicant credible or not.
Lenders typically look for the "usual" signs of a credible, risk-free applicant:

• Infrequent credit applications - "Credit seekers", or people who seek large quantities of credit on a regular basis, are considered high-risk to a lender.
  A good rule to follow is to avoid seeking credit except for when you absolutely need it (such as for a mortgage or car loan).
  
• Predictable payment schedule - Paying your outstanding loans and credit cards on time for a long period of time looks good and is crucial in obtaining and maintaining good credit.
  
• Low credit to income ratio - If more than 40% of your income goes to paying some form of debt it is unlikely that you will be approved for additional credit.
  Pay down your debt before seeking additional credit.
  

Your FICO score is the culmination of dozens of factors, and as such, many creditors look beyond your FICO score when assessing your viability.
Remember, the longer you maintain good credit habits the better your credit will be.