So what's the score?

A decent credit score has rarely been more important. The 2008-2009 financial crisis has made lenders more cautious--which means it's crucial for borrowers to appear creditworthy. Your credit score is a measure of your creditworthiness. It's based on the information in the credit reports compiled by the three major credit bureaus, Equifax, Experian and TransUnion.

The most widely used credit score is the FICO score, developed by Fair Isaac Corp. FICO scores range from 300 to 850. The higher your score, the easier it's likely to be to get credit--and you could also get charged a lower interest rate.

Pay your bills on time, and you're likely to have a higher credit score. You will probably also boost your score if you don't charge too much on your credit cards relative to your cards' credit limits. Indeed, even if you pay off your card balances in full every month, you might try to avoid using more than 20% or 30% of the available credit. Meanwhile, think twice before applying for credit too often, because that can lower your score. In addition to paying your bills on time and keeping your debts under control, you should check your credit report every year or so. Move quickly to correct any errors, especially if you're about to apply for, say, a mortgage or a car loan.

You can get a free copy of your credit report from the three major credit bureaus at www.annualcreditreport.com. You can also pay to find out your credit score while you're at that site, as well as at sites such as www.equifax.com, www.experian.com, www.myfico.com and www.transunion.com.

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