Since you are considering the purchase of a home and will require some mortgage financing I thought it would be helpful to pass along a little information about your credit score and some do's and don'ts to be aware of. How you handle your credit now can affect your ability to get a mortgage as well as the rate you will receive.
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300-574: Poor. A credit score in this range suggests you've had major troubles, like foreclosures or bankruptcy (which can stay on your file for up to 7 years). You will struggle to get approved for a standard loan or credit card and will have to fix your score or explore special options.

575-659: Below average. You may have a history of late payments, have defaulted in the past or may be borrowing as much as you possibly can. Any loans you can take out will have high interest rates tacked on.

660-689: Fair. You'll need to be on the upper end of this range to pass the Canada Mortgage and Housing Corporation's strict new rules for home buyers. However, lenders will consider you a moderate risk.

690-740: Good. Once your score reaches this stage, lenders will know that you're trustworthy, granting access to good interest rates and more exclusive credit cards.

741-900: Excellent. The top tier of borrowers. With a score this high, you'll have access to the highest credit limits, the lowest interest rates, rapid approvals and premium credit card perks.
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There are five main categories of information:​

Payment history (35% of the overall score)

Amounts owed (30% of the overall score)

Length of credit history (15% of the overall score)

New credit (10% of the overall score)

Type of credit used (10% of the overall score)
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Each of the above noted factors are assigned a value and a weight. The results of these factors are then added up and combined into a single number. Scores can range from 300 to 800. The higher the number the better.
A score takes into consideration all these categories of information, not just one or two.

No one piece of information or factor alone will determine your score.
The importance of any factor depends on the overall information in your credit report.

For some people, a given factor may be more important than for someone else with a different credit history. In addition, as the information in your credit report changes, so does the importance of any factor in determining your score. Thus, it's impossible to say exactly how important any single factor is in determining your score - even the levels of importance shown here are for the general population, and will be different for different credit profiles. What's important is the mix of information, which varies from person to person, and for any one person over time.

Your score only looks at information in your credit report.

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. Your score considers both positive and negative information in your credit report. Late payments will lower your score, but establishing or re-establishing a good track record of making payments on time will raise your score.