March is National Credit Education Month, a time to learn about credit scores and what they mean for you.

In the simplest terms, a credit score is the way businesses can predict the likelihood that you will pay them back in time. Using a complex mathematical formula, they decide if you are a safe or high risk, and whether or not they can trust you with a loan of any kind.

There are three major credit reporting companies; Experian, TransUnion, and Equifax; that will each give different reports, and can each give a different credit score, but generally the three will be rather close in number.

Scores will typically range anywhere from 300-850, and will be divided into ‘Bad’, ‘Fair’, ‘Good’, and ‘Excellent’, which can help companies decide how much of a risk you are for a home or car loan, renting, getting a credit card, and even some employment.

Some ways you can build, or even just maintain, your credit are using a credit card and making the payments on time. Using less than 30% of your credit card limit can actually help build your score. Having loans and credit cards in your name for a long period of time can also help your credit score, as long as you maintain payments, by building a credit age.

Your credit score can also be lowered by having too much debt or missing payments. Your credit age can be a large factor as well, as anything less than five years can be seen as a negative. Large credit checks, such as taking out large loans, can be harmful, and in fact getting your credit checked at all can lower it for a short time.