Max Out Your Credit Knowledge

· Proportion of installment loan amounts still owing (proportion of balance to original loan amount on certain types of installment loans).

Watts said it's important to note that someone who has only one credit card account -- no loans, no other credit accounts reported to the bureaus -- would find that her credit score would suffer more when her credit report shows that her card is maxed out. However, someone with several active credit cards who has not missed a payment for many years and who typically keeps low balances on her cards won't get hit so hard if occasionally she maxes out.

"In the first woman's case, the algorithm has less information to look at, so there is less good information to contribute to her score and counterbalance the likely loss in points from maxing out her account," Watts said. "In the second woman's case, her credit report has more information for the algorithm to analyze, including information reflecting good credit management that will help raise her score."

So remember, one way to maximize your credit score is by minimizing your utilization of your revolving credit accounts. And we all could benefit financially if we keep in mind what Canadian media critic Marshall McLuhan said: "Money is a poor man's credit card."

· On the air: Michelle Singletary discusses personal finance Tuesdays on NPR's "Day to Day" program and online athttp://www.npr.org.

· By mail: Readers can write to her at The Washington Post, 1150 15th St. NW, Washington, D.C. 20071.

· By e-mail:singletarym@washpost.com.

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