[ac29]

At least in the US, if you are unable to get a credit card due to having a bad credit score or no credit record at all, it certainly matters in that you miss out on rewards. Cash back of 1-5% is not nothing over a long enough time, and the folks paying with cash or debit are indirectly financing the rewards for the credit card users.

Per my understanding, these sort of rewards program dont really exist in other countries though.

[barbazoo]

It sounded like OP experienced the drop because they had to get new cards. But once they have new cards, the score doesntayter amymore. That's why I usually don't get the obsession over the credit scores.

[lotsofpulp]

There is almost no reason to be obsessed over credit scores themselves. However, if one is interested in obtaining credit in the future, they should maintain a good history of re-paying debts (such as student loans, auto loans, home loans, revolving credit card balances, etc).

Obviously, if you’re a lender and someone comes up to you and you know nothing about their history of repaying debts, you would ascribe them a higher risk than someone who does have a history of repaying debts.

There are a few other factors that could cause you to look riskier, so it also makes sense to not go out and get an auto loan and sign up for a few credit cards before applying for a home loan, since now that you just borrowed a bunch of money, you’re a higher risk, and hence will pay a higher interest rate.