Today, credit scores provide several benefits to both lenders and people seeking credit:

People can get loans faster.

Credit decisions can be made in mere minutes.  Even mortgage applications that used to take weeks can now be approved in hours.  Internet lenders and retailers can make instant credit decisions.

Credit decisions are more objective.

Credit scoring has no personal information about the person seeking credit – it is based solely on information about their bill-paying history.

Bad credit history counts for less.

If you have had poor credit repayment history in the past, it is less significant if lenders use credit scoring. It weighs the good and the bad in your credit report.

More credit is available.

Lenders who use credit scoring can approve more loans, because credit scoring gives them more accurate, current information. It lets lenders determine which individuals are likely to pay their loan payments even though their credit report shows past problems. Lenders can offer a choice of credit products geared to different risk levels. Lenders have a better understanding of the risk they are undertaking.

Credit rates are lower.

When more credit is available, the cost of credit for borrowers decreases. Automated credit processes, like scoring, make the credit decision process efficient and less costly for lenders. By controlling losses, lenders can make rates lower overall. Mortgage rates are lower in the United States than in other parts of the world because of the availability of information available.

Learning about your credit score and taking steps to improve it can lead to more favorable interest rates.