Why is Credit Score Rating Scale Important?
Whether you apply for a credit card or mortgage, your credit rating score report is always checked. This report enables the stores to accept checks, banks to issue credit or debt cards, etc. According to your credit score report, the lenders can analyze what risk you pose on them. As per the financial theory, increased credit risk implies that a risk premium has to be added to the price at which the money is borrowed. For example, if you have a poor credit score, your lenders will lend you money at a higher rate than the one paid by someone with a better credit score.
