Your credit report affects more than your financial life. It could affect your education, career and even your love life. That's because your credit report is used not only by lenders, but insurers, potential employers and even some educational institutions.

While a credit report has many records regarding credit histories, the most important record in the reports is the credit score. Credit scores give lenders a fast, objective measurement of your credit risk, lenders use the credit score as a component in how they set the interest rate they will charge for a loan. Knowing how the credit score works and how to improve your credit score can help you get your loan approved and obtain the best interest rate available on the market. So it pays to keep an eye on your credit and pay your bills on time. And it pays to know how the system works.