People sometimes assume their credit is much worse or better than it really is. Others assume they can improve their credit scores, but ignore their credit reports.
A potential creditor may want to know whether you are likely to repay an installment sale contract or loan or make timely payments on a credit card. It will evaluate your creditworthiness to decide whether to offer you credit or not, and to decide what interest rates and fees to charge.
Most of the information creditors want so they can make these decisions comes from your credit report and your credit scores. In order to understand how the information used in your credit score and report affect your credit, it's important to know how creditors consider is in your report, some things are not, factors include;
*How much debt you can realistically pay given your income.
*Your existing credit and credit limits.
*Your financial stability.
Reference: Attorneys Amy Loftsgordon & Cara O'Neill