Lenders can use your credit scores and reports to decide whether to do business with you and on what terms. Your credit score can affect
things like the interest rates you may get, what credit card options you’re offered, whether a landlord will rent you property and whether some employers will offer you employment.
A credit report
is a detailed report of a person's credit history. It contains information like your history of paying loans and the status of your credit accounts. It gives a view of your financial habits, like how often you make payments on time, how much credit you have, and how much credit you're using. A credit report can also contain public record information, like bankruptcies, judgments, and liens that give lenders an idea of your obligations and financial status.
Lenders use credit reports to make lending decisions, like if they will loan you money, whether you continue to meet the required terms for your account, or what interest rates they can offer you.