Do you know your credit score? If you are trying to buy a new home or any large purchase like a car or a boat, you can bet your lender will know. Your credit score is the most important factor in obtaining a loan, it indicates to a lender your history of being a responsible borrower. There are, of course, other factors taken into account when granting a loan such as income, down payment, debt-to-income ratio (DTI), and cash reserves, to name a few. Your credit score is one area where you can make the most positive or negative changes, sometimes without even knowing why. The actual formula used by the credit bureaus is a very closely guarded secret; however, there are many well known things that can be done to improve your score. 
There are also things that should be avoided to prevent lowering your score. Credit scores are determined using many different factors including: Payment History, Types of Credit, New Credit, Amounts Owed, and Length of Credit History.
There are things that can affect your credit score negatively, some are more devastating than others. The following chart shows just how some of these events can impact your score:
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