Credit scores give your lender a benchmark that helps him or her determine the likelihood of your ability to repay your loan. But your score isn't determined by your lender; rather, a credit information provider calculates your score.

Your credit score will range typically between 600 to 800, with higher numbers indicating a stronger standing. Your score is based on only your credit report. Demographic information -- including your age, city of residency, employment, marital status, race, gender and national origin -- are irrelevant.

When it comes to your credit standing, the "kisses of death" include (surprise, surprise) mortgage foreclosures and bankruptcies, as well as vehicle repossessions. Being late on your electric bill last June is nothing to lose sleep about, provided you paid within 30 days. If being late on your bill payments is a consistent problem for you, however, you may find your reputation (in other words, your "credit history") standing in your way when you attempt to land a home loan.

(For credit reporting purposes only, bills 30 days overdue are regarded as late. However, it's wise not to wait until the last moment just in case a check really does get lost in the mail.)

The first time you see your credit report, you'll find listed all of your outstanding debts, including major and minor credit cards, student loans, car loans and all other loans to which you are obligated. In addition, the report will provide your payment history with respect to each one of these debts. Have you made your payments on time? Consistently? Sporadically? Are you in default on your student loans or other loans? While lenders do not expect perfect credit, too many payments 30 or 60 days overdue in the past year or two can sink a mortgage application or drive you into the realm of higher rates and tougher terms.

If you're a first-time homebuyer, you may not be aware that lenders check credit in ways which may be surprising. Do you exist solely upon credit cards, or have you demonstrated responsibility with various types of credit (which will increase your chances of loan approval)?

Have you been knocking at the doors of multiple lenders, asking for their approval but never receiving it? Another factor of which you may not be aware is that each time you approach a lender to obtain a loan your credit history is reviewed, a review that goes on your "permanent record," so to speak -- regardless of whether or not you get the loan. If a prospective lender sees an extensive history of these "credit inquiries" on your report, that's likely to send up a red flag and hurt your chances for approval. One exception, however: Any inquiries you've initiated in the 30 days prior to having your credit score calculated will not be reviewed or used against you.

If for any reason you're denied a loan based on your credit rating, don't despair. You can improve your score by having two to four credit cards, but not credit cards charged to the hilt. More savings and less spending help, and every creditor loves full payments made on time every month.

It's appropriate to check credit reports for incorrect listings and information that is out-of-date, but that's about it. If you're offered a new credit identity, forget it. So-called credit segregation schemes are easy to spot and likely to be illegal.