Your credit score affects the interest rate you pay on mortgages, car loans and credit cards, so a low score can cost thousands over the life of a loan.

The biggest factors are payment history, how much of your available credit you use, length of credit history, and recent applications for new credit.

A single missed payment can drop a good score significantly, while using more than 30% of a card limit, even if you pay in full, can still hurt your score in that month.

Check your credit report for free regularly, dispute errors in writing, and build good habits: autopay minimums, keep utilisation low, and do not close old cards unnecessarily.