Many people will be aware of the concept of credit ratings and credit reports but will not know quite what they are and how they work. They are basically a record of recent credit transactions, default, applications and so on. These events are scored to produce a credit rating. This credit rating is a very important part in the success or not of an application for a financial product such as a credit card or loan.
A person may obtain a copy of their credit report from a number of agencies who manage them. Most people may never have cause to obtain a copy, but if a problem is experienced in applying for a credit card or loan, then a copy of the credit report will most likely provide the reason why. The problem can then be addressed and the credit rating improved to improve the chances of successful future applications.
An important point to note is that applications successful or not are recorded for purposes of credit ratings and so blanket applications for credit cards or loans in the hope that one will succeed are not a good idea.