So let’s get back to basics: “credit” is how much money someone is willing to trust you with. Your credit score indicates how well you’ve used that trust. Your credit score comes from your credit report, which shows your activity—how much money you’ve borrowed, how much you’ve paid back, and whether or not you paid it on time. Credit bureaus are the companies that keep track of your credit score by recording your credit report.

You are entitled to copies of your credit reports from three different credit bureaus: Equifax, Experian, and TransUnion. A credit bureau is a company that manages your credit history and compiles it all onto a report. Take advantage of this service and get your report annually for free or hire a monitoring service to review it monthly. That way, you can keep tabs on your credit and take care of any mistakes that are hurting your credit score quickly.

There is a lot of information on your credit report, and if you don’t understand how information is recorded, it can get a bit overwhelming. The more you understand about your credit report, the easier it will be for you to spot any mistakes or inaccuracies. Your report includes payments you have made, any debts you have, and how regularly and timely you made your payments at a minimum.

Your credit score is a reflection of your payments, debts, and your credit worthiness expressed in a number. This number, often between 300 and 850, speaks volumes to potential lenders and even employers about your credit worthiness. This number could be what either allows you or prohibits you from buying a car or taking out a loan on a new house. This could be one of the most important numbers associated with your financial life.

The ugly truth about credit is that your credit score can be damaged by faulty information on your credit report. That’s why you should keep tabs on what’s happening on your credit report. Companies, doctors, and banks can make mistakes that spell out headaches for you. It’s not malicious—it’s just frustrating. That’s where credit repair comes into play.

By investigating and disputing questionable negative items on your report, or working with creditors, you may be able to improve your credit score. Having legal counsel on your side when undertaking credit repair is beneficial so your rights are preserved and you are able to make the most headway with repairing your credit.

The more regularly you make your payments, and if you pay them in full, are factors in your credit score. Don’t become lazy in this task—it may make or break your ability to have and spend money in the future. Try not to have too many credit cards, but at the same time, vary the type of credit you have. This may seem like a tricky balance, but in the end you will see positive results in your credit score.