Well, the notion of credit for a job well done extends beyond your personal, academic, or professional achievements and into your financial life. In the financial sense, credit is an agreement between a lender, a bank, credit union, credit card issuer, utility company, or other institution that has a financial stake—and a borrower.

Your credit score can have a major impact on your life. Not only do creditors typically check your score when deciding whether or not to approve your application and what interest rate to charge you if you are approved, but landlords, insurance companies, and even employers often check it as well.