This is stating the obvious, but credit reports are primarily about how likely you are to repay money someone lends you. Lenders want to do one thing: get repaid, and their whole industry is designed for that purpose. So they created the credit score; how likely are you to pay them back…this is factored into your approval or denial for a line of credit. Even though this is the initial purpose, they may want to lend an increased slice of the market by looking for loans and offering distinct types of lending, which a few with lower scores could qualify for as well. These loans will typically carry higher interest rates, etc… and this is the cost of having a bad credit history.

Given that loans are used to finance things like homes, education, cars, and just about every other big purchase in life, some of which cannot be easily acquired sans credit (or only by acquiring it at much less favorable terms), one might care a great deal about what is on their sensible alarms and dots, i.e., their credit report.

Companies often look at your credit reports when you apply for renting or leasing accommodation. Most of the time, it is because your landlord wants to be reasonably sure you can come up with the cash when your rent comes due. tenants, rentals, or residential properties.

However, there is a growing tendency for employers to check credit when evaluating job applicants. Every employer will have their reasons for utilizing credit reports, but the one fact that all these financial background checkers seem to agree on is a good risk of employment. It is a bit messed up as well since the very people who will need employment most are exactly those who can not arguably be refused one, but this seems to be where we are headed.