Why Good Credit Matters

Lenders use your credit report in order to judge your reliability as a loan candidate. Your credit report demonstrates your ability to handle debt responsibly and will help banks decide if you are a desirable loan customer. A high credit score can help you lock in low interest rates or secure special deals on loans. A bad credit report, on the other hand may prevent you from securing loans thus compromising your ability to buy a car, open a credit card or rent or buy a home. A history of inability to manage your credit successfully will make lenders uncomfortable about trusting you with additional funds in the future. If they do lend you money, you will almost certainly pay a higher interest rate than a borrower with good credit.