Your credit report is one of the most important documents of your life. Banks, lenders, and other businesses use your credit report to make financial decisions about whether to do business with you and how much they will charge. A good credit report – contains positive information about your borrowing habits. It leads to a higher credit score that will get you lower rates and better repayment terms. A bad credit report - includes negative information and means a lower credit score, resulting in more higher interest rates and less favorable credit card and loan terms. It's in your best interest