Credit scoring is the system of choice for granting, or denying, credit. With a credit scoring system, each item on the credit application is assigned a score (positive or negative), and a report from a credit reporting bureau is produced and scored in a similar manner. The scores are added together to create your personal credit score. Many credit reporting agencies also have developed sophisticated mathematical analysis tools that operate on your credit file and assign a score that indicates your chances of declaring bankruptcy. These final scores group you into predefined score ranges that loan officers use to grant, deny or condition your credit application. How you fill out the credit application can affect your score. Learn how the credit scoring system works and what you can do to improve your score.