Your credit score is a number used to show creditors and lenders the creditworthiness of a potential loan borrower, or refinancing applicant.

The number, or score, which can range between 300 and 850, is determined through an analysis of a person’s borrowing and repayment habits. How timely or late you are paying a bill or how much revolving credit card debt you have can positively or negatively affect your score, as it tells lenders how likely you are to repay them the money you want them to lend to you.

The data is pulled from the borrower’s credit report, maintained by credit bureaus, such as Equifax, Experian and TransUnion. The higher your debt-to-credit limit ratio, the lower your score, which means the more of a risk you are. As a result you may receive higher interest rates or be denied credit. A higher score receives more favorable rates.

The most widely used credit score is called FICO for Fair Issac Co. the entity that developed the scoring system.