The information in your credit report is used to create your credit score. (For a small fee, you can get your credit score from any of the three credit reporting companies or from www.myFICO.com.) A credit score is a number generated by a statistical model that objectively predicts the likelihood that you will repay on time. The higher your score, the less risk you represent to the lender.

A credit report that includes late payments, delinquencies or defaults will result in a low credit score and could cause you to have to pay higher interest rates or be declined altogether. The most important factor in a credit score is the payment history. This history shows whether payments were made on time or late. Recent delinquent payments are more damaging, compared with late payments from many years past.

Also, the severity of the delinquency is a factor. For example, a payment made 30 days late has less impact on your credit score than a payment made 60 days late.

Another major factor in the credit score calculation is the amount owed on credit accounts. A recommended guideline is to keep your balance at less than half the total credit available on the credit line. This utilization rate is an important factor in the credit score calculation.

Factors not considered in a credit score include age, race or ethnicity, income, job, marital status, education, length of time at your current address and whether you own or rent your home.

An important first step in getting the credit you deserve is to check your credit report. Review your credit report at least once a year to make sure all information is accurate. If you find an error, the Fair Credit Reporting Act requires credit reporting companies and those reporting information to them to correct the mistake.

Beware of credit repair services that claim they can erase your bad credit. Many of these are scams. There’s no quick fix, but you can improve your credit with time and effort and dedication to your plan.