[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.