Credit Rating is a very misconstrued word. Simply put, credit rating indicates how creditworthy you are.
Many myths and interpretations are associated with Credit Rating. Essentially, its a rating system worked by Lenders to determine the credit-worth of prospective customers and borrowers. And this system takes multiple factors into account to decide the rating for your eligibility for the credit. Hence it is a good practice to review your finances frequently and keep a check on your theories