There may be the difference in the need for a good credit score. The need of good credit score varies from person to person need of acquiring loan services from the financial institution. There are various types of needs such as mortgages, business loans, business credit cards, auto loans, personal credit cards, policies purchase, personal loans or employment; whether an individual needs a loan in order to buy a property or in order to a start-up business. In all the circumstances high credit score is needed in order to get qualifies for lower interest rates.
Credit (from Latin credere translation. "to believe") is the trust which allows one party to provide money or resources to another party where that second party does not reimburse the first party immediately (thereby generating a debt), but instead arranges either to repay or return those resources (or other materials of equal value) at a later date. The resources provided may be financial (e.g. granting a loan), or they may consist of goods or services (e.g. consumer credit). Credit encompasses any form of deferred payment. Credit is extended by a creditor, also known as a lender, to a debtor, also known as a borrower.