Lenders typically look at your credit score and credit history as an indicator of whether you’ll pay your loan and if those payments will be on time. The higher the score, the lower risk you pose to a lender. If you have a low credit score, you might not qualify for a loan, or you may pay a higher interest rate than borrowers with a higher credit score. This is why it’s important to track your credit score and practice good credit habits, like paying your full bill on time each month.