No doubt about it, credit score rating scales are confusing. Working through all the numbers can leave you wondering what it all means. Understanding ratings and how they work will help you to read and understand your credit score more easily.

There are several pieces of information reviewed by companies when they build your credit score. These factors include the following:

- Your past payment history - When you pay your bills - The amount of outstanding debt you have - The length of your credit history

Large amounts of debt and short credit history will result in a lower credit score even if there are no problems that stand against your credit.

Recent credit applications also factor into your score. If you have made too many applications recently, this will cause you to receive a lower score. As will too much debt at high interest rates, such as high rate credit cards.

700 or higher is considered to be a good credit score. Being awarded credit at low interest rates should not be a problem if you have a score of 700 or higher.

With a score of 450 to 650 points to that your credit score needs improvement. Finding a loan or qualifying for a credit card t this score will be more difficult unless you have some type of security. Considered to be a higher risk, higher interest rates will likely be an issue as well.

If your score is below 450, your credit is in need of some serious help. At this level you likely won’t be able to qualify for a loan or credit card until you pursue some form of credit counseling to improve your score.

To improve your rating, check out the many sources that can assist you. Credit counseling services are available online as well as in the telephone book and many offer their services for free. Assessment of your financial situation is available and advice to improve your credit score will likely move you toward your goal of a higher credit score.