If credit is the gateway to more financial and purchasing power, then your credit score is the key that opens that gate up. Lenders and credit card companies use your credit score to determine your ability to pay off loans and card balances.

A credit score is a number between 300 and 850, and it’s calculated based on various aspects of your credit history. A good credit score is generally considered to be 670 or higher, depending on the credit-scoring model. Poor scores typically range between 300 and 579 — well below the national average FICO Score of 714.

You’ll need a good credit score to get a home or car loan and also snag the best interest rates. The way to get there is to ensure you meet the expectations of creditors.

One positive step you can take is to check your credit score regularly to ensure that it aligns with your credit activity. You can do this by visiting a free credit scoring website, consulting with a credit counselor, contacting your credit card provider, or contacting financial institutions that provide the service.

For example, Chase Bank lets you check your credit score through its Chase Credit Journey program — whether you have an account with the bank or not. The service is free and sign-up is quick and easy on Chase’s website. You’ll get score updates each week, but you can also check your credit score anytime and as many times as you want. Chase Credit Journey also offers many more free services, including identity monitoring, credit activity alerts and educational tools.

Understanding Your Credit Score

It’s important to understand the factors that go into determining your credit score. FICO and VantageScore, the two most popular credit rating services, each have their own model that weighs several components of your credit history, but both consider the same basic factors.

Here’s a look at how VantageScore weighs the six main categories that it considers:

Payment History (About 40%)

Your payment history lets lenders and other creditors know how likely you are to make your payments on time. So it makes sense that it’s the most important factor in determining your score. If you miss payments or make them late, your score will take a hit. Conversely, building a record of on-time payments can give your score a boost.

Credit History Length and Credit Mix (About 21%)

This category tracks how long your credit cards and other lines of credit have been open, and it also takes into account the different types of credit you have. Lenders weigh the average age of all your lines of credit when determining your credit score. If you have established a long history of good credit and you hold a diverse mix of lines of credit, your score will benefit.

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This article was originally published on GoBankingRates.com on October 5, 2022.