Mortgage lenders usually use FICO scores to determine one's ability to pay them back. Since the three credit bureau scores are different, some banks look at all of them to get an average, or tri-merge, score.

Two common factors in determining your creditworthiness are timely payments and credit utilization. Other factors like credit history, types of accounts, and recent hard inquiries are used to varying degrees. It means that the score you see may be different to the score a lender use.

• Late or missed payments will drive down your credit score and remain on your record for seven years.
• Credit utilization is the percentage of available credit you're currently using. If you use more than 30% of your available credit, scoring models will consider you unreliable.
• Credit history considers your long-standing credit accounts. A long account history in good standing increases your score.
• Too many recently-opened credit accounts can be seen as risk.
• Having different credit accounts increases your credit score.

A credit report documents your credit history, your current status of accounts and payments, and when companies have pulled your report when you've applied for credit. A credit report is the source of your credit score.

It is vital to keep an eye on your reports and notice anything that could cause long-term damage to your credit. You can request a free credit report per bureau every year.

Common factors that could damage your credit score are negative items, such as bankruptcies, foreclosures, late payments, high credit utilization, and credit inquiries from potential lenders.

Some people employ the services of credit repair companies to dispute incorrect or fraudulent credit items on your behalf, but the outcome is not guaranteed.