Every person who has taken out a loan at least once in his life has a credit report. The report contains all the information about the loans you took earlier, their terms and payments. Thus, if you violated the terms of the loan, your credit rating was affected. For example, if you forgot to pay your loan on time, it worsens your credit history.
For most lenders credit history is important. If you have a good rating, lenders will trust you and you will easily get any loan from the bank. If your credit history is not an example to follow, there may be problems with obtaining a loan, since lenders will not see you as a reliable borrower. Fortunately, now there are a large number of lenders who are willing to give loans to people even with bad credit.