For example, you can't buy a house, a key asset, if you have bad credit. Your credit rating is assessed using information such as the following:

- Your debt currently carried.
- If you pay your bills on time.
- Your number of credit cards owned.

Lenders base their decision to lend you money or not, on the above information. You need to have demonstrated a good history to the institution from which you want to borrow. If you can't, they won't lend the money, issue the credit card, increase a card's credit level, or establish a lease etc. They won't take the risk that you might not, or can't pay them back. Bad credit can stop the purchase or rental of a home, purchase of a car, approval of a business loan, or the approval for a credit card.

Can you qualify? You'll need a good credit history, the income or assets from which to make payments, and not be currently exposed to high levels of debt beyond your ability to repay.

Your credit profile. There are credit-reporting bureaus that track your repayments of obligations, such as leases, loans, mortgages, and credit cards. From an inquiry to a bureau such as Equifax, a financial institution might be able to find information related to: your vital statistics, marital status, social insurance number, employment information, the number - and balances - of credit cards you carry, your mortgage, student loan status, taxes owing, bankruptcies, and historic queries from potential creditors to which you've applied. You can inquire yourself as to your reported history and credit score. Make sure you check for errors and correct discrepancies that can harm your credit. Some lawyers specialize in repairing credit records.

Your credit score. These ratings are based on your payment history, amounts outstanding that you owe, length of time using credit, your current loading on of new credit, and your types of credit used.

Financial institutions will particularly look for: bankruptcy, collections, foreclosure on a home mortgage, slow payment making, time in your current job, your occupation, how long you've lived at your current address, number of inquiries on file (too many indicates dependency on debt), your age (50 or older is best), how many credit cards you own and balances carried on them (under 50% of the maximum is more favourable).