POMPTON LAKES — One main concern when applying for a mortgage or renting a house is a good credit score. A credit score is a number, based on a statistical analysis of credit files. It is intended to help lenders and others predict how likely people are to make payments on time.

FICO scores are calculated from a lot of data in your credit report. There are a few ways to improve your score so that your credit rating doesn’t get in the way of things you want to do.

Lenders such as banks, credit card companies, insurance companies, and even landlords use credit scores to evaluate the potential risk and to mitigate losses due to bad debt. Credit scores determine who qualifies for loans, interest rates, and what credit limits will be.

The most common credit score model, widely used in the United States, was created by Fair Isaac Co. and is called the FICO score.

FICO risk scores range from 300 to 850, with 723 being the median score of Americans in 2010. The interpretation of a credit score will vary by lender, industry, and the economy as a whole.

“It’s hard being a tenant if your score is low,” complains Michael Porto, who’s been trying to rent a condo in Pompton Lakes. “Last year I had some problems paying my credit card. Now that I want to move to a new place, it’s been difficult to make landlords understand that I have a job and I will pay my rent.”

These days lenders typically demand scores of about 740 for the best mortgage rates. Lower scores mean higher rates or no loans at all. People with top scores are still getting credit card offers. People with weaker scores, by contrast, are finding their access to credit slowly strangled. Private mortgage insurance companies will not even provide mortgage insurance for borrowers with scores below 660.

However, lenders look at many things when making a credit decision including your income, how long you have worked at your present job and the kind of credit you are requesting.

Late payments will lower your score, but establishing or re-establishing a good track record of making payments on time will raise your FICO credit score.

Tips to Repair Your Credit Score

Repairing bad credit takes time and there is no quick way to fix a credit score. In fact, out of all of the ways to improve a credit score, quick-fix efforts are the most likely to backfire, so beware of any advice that claims to improve your score quickly.

The best way to rebuild credit is to manage it responsibly over time. The tips below will help you do that.

Check your credit report. Credit score repair begins with your credit report. If you haven’t already, request a free copy of your credit report and check it for errors. In particular, check to make sure that there are no late payments incorrectly listed for any of your accounts and that the amounts owed for each of your open accounts is correct. If you find errors on any of your reports, dispute them with the credit bureau and reporting agency.

Set up payment reminders. Making your credit payments on time is one of the biggest contributing factors to your credit score. Some banks offer payment reminders through their online banking portals that can send you an e-mail or text message reminding you when a payment is due. Also consider making automatic payments through your credit card and loan providers. You can have payments automatically debited from your bank account.

Reduce the amount of debt you owe. This is easier said than done, but reducing the amount that you owe is going to be a far more satisfying achievement than improving your credit score. The first thing you need to do is stop using your credit cards. Use your credit report to make a list of all of your accounts and then go online or check recent statements to determine how much you owe on each account and what interest rate they are charging you. Come up with a payment plan that puts most of your available budget for debt payments towards the highest interest cards first, while maintaining minimum payments on your other accounts.

Pay your bills on time. Delinquent payments, even if only a few days late, and collections can have a major negative impact on your FICO score. This category has the greatest effect on improving your score, but past problems like missed or late payments are not easily fixed. They will stay on your report for seven years.

Get current and stay current. If you have missed payments, get current. The longer you pay your bills on time after being late, the more your FICO score increases. Older credit problems count for less, so poor credit performance won’t haunt you forever. The impact of past credit problems on your FICO score fades as time passes and as recent good payment patterns show up on your credit report. And good FICO scores weigh any credit problems against the positive information that says you’re managing your credit well.

If you are having trouble making ends meet, contact your creditors or see a legitimate credit counselor. This won’t rebuild your credit score immediately, but if you can begin to manage your credit and pay on time, your score will increase over time. Seeking assistance from a credit counseling service will not hurt your FICO score.

Manage your cards. Have credit cards, but manage them responsibly. Having credit cards and installment loans (and paying timely payments) will rebuild your credit score. Someone with no credit cards, for example, tends to be higher risk than someone who has managed credit cards responsibly.

Keep balances low. Keep balances low on credit cards and pay off debt rather than moving it around. High outstanding debt can affect a credit score. The most effective way to improve your credit score in this area is by paying down your revolving (credit cards) debt. In fact, owing the same amount but having fewer open accounts may lower your score.

Don’t open a number of new credit cards that you don’t need just to increase your available credit. This approach could backfire and actually lower your credit score.