1. Purchasing a home – Buying a house typically implies getting a home mortgage, the ACCC states. The capability to take out a home loan hinges upon your credit ratingcredit rating. If you have a bad credit rating, it is unlikely a bank will authorize the loan. In addition to using credit ratingcredit history to decide whether to authorize you, loan providers likewise use credit scorecredit history to assess just how much of a credit danger you represent. If you have a low credit ratingcredit history, youre thought about a poor credit threat and will be charged a higher interest rate on a loan than somebody with an excellent credit score, notes Priyanka Prakash, financing expert at Fit Small CompanySmall company in New York City. For example, even having a 700 credit scorecredit history versus a 660 credit ratingcredit rating can save you countless dollars over your life time.