Your credit score is one of the most important numbers in your financial life. The formulas that calculate it are a secret, but they are algebraic.

Your score is a weighted average of several key variables. Some variables are more important than others.

Variable 1: Payment History (Highest Weight). This is often a simple ratio: (Number of On-Time Payments / Total Number of Payments).

Variable 2: Credit Utilization (High Weight). This is a crucial algebraic ratio: (Total Credit Card Balances / Total Credit Limits). Keeping this ratio low is key.

Variable 3: Length of Credit History. This is a linear variable; the longer, the better.

Variable 4: Credit Mix. The model gives points for having a healthy mix of different types of credit (mortgage, auto loan, credit cards).

Variable 5: New Credit. Applying for too much new credit in a short time can lower your score.

The credit bureaus use a secret, complex algebraic equation to combine these variables into your final three-digit score.

While you don't know the exact formula, understanding the key variables and their weights gives you the power to improve your score.

You can 'solve for a better score' by focusing on the variables with the highest weight, like paying your bills on time.