When you apply for credit, whether it’s a credit card, car loan, or a mortgage, lenders want to know whether you are likely to repay your loan and make the payments on time. To determine if you are a good credit risk, lenders examine your credit score whenever you apply for credit. Your credit score is an important factor in determining whether creditors will approve your credit application and, if you are approved, the cost of your loan. Other factors that can affect your credit application include your income and employment history.