Think of your credit report as a financial passport. When you approach lenders for credit or a loan, then the information in your report will be used to determine whether you qualify for your requested loan - or not.
Credit Ratings
The most important feature on your credit report is your credit score or your “credit rating”. Your credit score is a value that is calculated according to how well you pay your accounts. A “healthy” credit score depends on the model that is used by each credit provider (not every credit provider calculates a score the same way).
Credit Health
A good credit report with a healthy score will increase your chances of being approved for a credit card, a loan, vehicle finance, a mortgage, and store credit. A “bad” credit report with a low score will lower your chances of being approved for loans, credit, and finance.