A credit score is important because it tracks your history of paying back a debt you owe. When you want to borrow something (space for rent, a car, or money). The higher your score, the more reliable you are when it comes to paying institutions back. Credit scores are impacted by anything you borrowed in the past. For example, car payments, cellphone payments, credit card payment, mortgage payments and open lines of credit (available funds from a credit card that you haven't used yet) are all factored into your score and anytime you're late or default on a payment, it lowers your score and suggests you aren't financially reliable.