Credit Scores-Why Worry About It?Why Is It Important to Have a Good Credit Score?Based on the data from the previous reports, you can understand why a lender is more willing to lend money to someone with a higher credit score-the lender is less likely to lose money. So, if you want to borrow, it is in your best interests to have a good credit score. It's not that you can't get a loan if you have a low credit score; it's just that if you do, you'll likely have to pay a higher interest rate. Why? Because, statistically, the lender is more likely to lose money on you-you are statistically more likely not to pay back the loan as agreed upon. Back |