The credit rating determines the likelihood that the borrower will be willing and able to repay the loan under the agreement without default. A person's credit rating affects their chances of getting a given loan and the favorable conditions for that loan. Read more here https://eturbonews.com/2999047/how-long-do-late-payments-affect-your-credit-score/. A high credit rating indicates a high probability of fully repaying the loan without any problems, while a poor credit rating suggests that the borrower has had problems repaying loans in the past and may follow the same pattern. in future.