When you are getting a loan, a new credit card, or even a quote for car insurance, a little three-digit number determines whether you are approved and what rates you will pay. This number is your credit score and it is calculated from everything that is in your credit report to determine your credit worthiness. Lenders use your credit score to quickly decide the chances that you will repay your loan obligations if they do business with you.
As you can imagine, your credit score is very important in your financial life. It is not often that someone can pay for an entire house in cash, so for most people earning and maintaining a high credit score is key.