Yes or No decisions
are made on loan applications
A very low credit score could cause you to be turned down for a home or car loan. It may also cause your credit card application to be rejected.

A high credit score means your loan application is more likely to be approved. You may even enjoy an expedited loan process, which is quicker and requires less documentation.

Higher or lower borrowing costs
If you have a low credit score, you will pay more in interest on mortgages, car loans, credit cards, and other loans. Think about it from the lender's perspective: if you have a low score, it means you've probably missed some payments or maybe even defaulted on a loan in the past. The lender is afraid you might do this again. To make up for the extra risk, the lender charges a higher interest rate on your loan. Conversely, a high credit score means that,based on your payment history and other factors, you are more likely to pay back the loan. In this case there is less risk to the lender, so your interest rate will be lower. Over time, you can save thousands of dollars in interest by maintaining a high credit score.

Better chance
of getting that job or promotion
In today's competitive job market, employers are increasingly looking at credit reports and credit scores when making hiring and promotion decisions. A low credit score and numerous unpaid bills or late payments translateinto a potentially irresponsible employee. Conversely, a high credit score and few negative factors on a credit report reflect a high level of trustworthiness and responsibility.

Lower insurance premiums
Insurance companies are increasingly checking your credit score to determine what rates to offer you on home,car and liability insurance.