Credit scores, along with income and debt load, sum up how well a person has managed credit and whether the person represents a good risk for a lender. The most common credit-scoring model used today is Fair, Isaac & Co.'s (FICO). The big three national credit repositories--Equifax [www.equifax.com], Esperian [www.experian.com], and TransUnion [www.transunion.com]--rely on it. The scores typically range from 300 to 900, with a higher score indicating a better credit risk.

These are the five major items that make up FICO Scores:
PAYMENT HISTORY - What is your track record?
AMOUNTS OWED - How much is too much?
LENGTH OF CREDIT HISTORY - How established is yours?
NEW CREDIT - Are you taking on more debt?
TYPES OF CREDIT USE - Is it a "healthy" mix?

2. Don't order home furnishings or appliances during the mortgage application process. The balance owed will be counted as debt and reduce your home buying ability.

3. Don't open new credit cards or other credit accounts. Doing so lowers the average account age and looks risky to the scoring model.

4. Don't close accounts. The lowered available credit also reduces your score.

5. Avoid finance companies, which charge high fees and rates. Their use is considered indicative of poor credit management, even if the borrower pays the loans back on time.

6. Shop for rates all at once, Multiple inquiries from the same type of lender are scored as a single inquiry if received within a short time period.

7. Pay down credit card balances. Keep revolving debt to a minimum. However, off-loading credit card debt to a new card with a lower interest rate isn't considered good credit management and also results in another credit inquiry that will lower your score.

8. Don't keep switching cards. Keep a least one of your cards for more than two years. Loyality continues to build until you've had the card about 15 years, then it starts to tapper off.

9. Wait 12 months after credit difficulities to apply for a mortgage. Some items are scored less heavily after 12 months.

10. Order your own credit report from myfico.com and see if there are any errors.