I believe the better your credit history, the better you look in the eyes of a creditor. Delinquency rates are generally based on your credit score, averaged ov

I believe the better your credit history, the better you look in the eyes of a creditor. Delinquency rates are generally based on your credit score, averaged over many borrowers and allows creditors to make quick decisions. The more likely you are to pay back a loan, the better your interest rate, as the creditor is assured they will make a complete return on their investment. When the chance of you disappearing or declaring bankruptcy is high, you are considered high risk and so your interest rate is increased to make up for that risk. At least that is how I understand lending.