What is the importance of a good credit score?

Credit score refers to a good indication regarding the financial position of a consumer in a bank. It is based on various factors considered by a bank. These factors include the amount of money of a particular customer in his bank account, his loans, his mortgages, payment habits etc. Maintaining a substantial amount of money in the bank, timely payment of loans etc gives a high credit score to a customer.

A credit score is actually a file maintained by a bank for an individual customer with all his financial details as a report. As the report changes, the score changes too. Having a good score indicates a good financial health.
There a number of advantages and benefits that a customer with a good credit scores can avail from a bank. Banks would approve loans with less interest rate, mortgage or lending options become easily available. A viable property, jewelries and car etc can be submitted by a customer with no money to clear his debt.