A credit score is a numerical value that represents your creditworthiness, typically ranging from 300 to 850. Lenders use this score to determine the risk of lending to you. The score is based on several factors: 1. Payment history: This accounts for 35% of your score and reflects whether you've paid your bills on time. Late payments can significantly lower your score. 2. Credit utilization: Making up 30% of your score, it’s the ratio of your current credit card balances to your total available credit. Ideally, you should keep it below 30%. 3. Length of credit history: This makes up 15% of your score. A longer credit history shows you have experience managing credit, which can help your score. 4. Types of credit: Comprising 10% of your score, having a mix of credit types, such as credit cards, loans, and mortgages, can improve your score. 5. New credit: This accounts for 10% of your score. Opening many new credit accounts within a short period can lower your score temporarily. To improve your score, focus on paying bills on time, reducing your credit card balances, avoiding applying for too much new credit, and checking your credit report for errors. Good financial habits over time will help raise your score.

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