Lenders use your credit reports and credit scores — which are typically between 300 and 850 — as important factors when deciding whether to lend to you and what interest rate to charge you.

The fewer problems there are in your credit report, like payments more than 60 days late or large credit balances, the higher your credit score will be. And, generally, the higher your score, the more likely you’ll qualify for credit and a better interest rate.

And lenders aren’t the only ones who check your credit report and credit score. So do potential employers, potential landlords, cell-phone providers, insurance companies, and others.