Having a Good Credit Report - By using or making payments on your credit card or making repayments on your loan you are building a record of on-time payments that will prove that you are “credit worthy.” Potential creditors will look at your credit history to determine if they believe that you will repay them.
Conversely, late payments will reflect on you poorly and make creditors think you are a credit risk.
As such, they will be less likely to lend to you or will lend to you at a higher rate of interest, making
it more expensive for you to get credit. This can affect you when you buy a home or obtain a student loan or when you obtain a business or personal loan.
Additionally, many different types of companies that aren’t lenders have started looking at your credit history to determine your level of responsibility. Often potential landlords or employers will look at your credit history as part of their decision to rent you an apartment or offer you a job.
Even cell phone companies often check credit these days. If you have no credit or damaged credit you may be denied a cell phone contract or be forced to put down a security deposit in order to obtain the phone.