Many people take out loans in order to payoff other debts they have accumulated over time. When having a bad credit score you limit the ability in taking out other loans such as auto loans, house loans, personal expense loans and a debt consolidation loans. Without a good credit score you might get a loan but in return you would be paying very high interest.

Another reason why you need good credit is to be consider for employment. A lot of businesses are now conducting a credit checks to see how you handle your finances. This will show if you are a trustworthy employee and responsible person with just checking your credit score. Employments where they do a credit check in which most cases are included on your background check are jobs that have federal contracts, federal/government jobs, law enforcement jobs, and financial jobs.