Your credit history can affect your ability to obtain a line of credit, like a car or a home loan.
Your credit score is a number that represents your credit worthiness and is based on the information contained in your credit report. Most credit providers use an automated process to decide whether or not you get approved for finance based on your credit rating and your ability to service the loan, so the information within your credit report plays an important role in determining your credit rating.
Your repayment history can also play a part in determining how creditors make a decision on your application. If you forget to pay a bill and it goes past 60 days from the due date, a default may be recorded on your credit report. Even if you pay any outstanding debts, credit providers may still reject your application. Therefore, completely removing black marks from your credit report is imperative to improving your chances of a loan approval.