Your credit score will define your creditworthiness to lenders. With your credit score, lenders will be able to discern whether you will be able to handle new credit, that is, whether you will be able to pay back your loan or pay your credit card bills regularly. But if you have been defaulting on your EMI payments or credit card bill payments, your credit score will drop drastically. With a bad credit score, lenders will not want to lend you new credit. A bad credit score shows that you are not credit responsible.
Banks and NBFCs take credit score as a factor to decide the terms and conditions on which the loans are given. Having a credit score higher than 750 will make you eligible for low interest loans and the best credit cards in the market. On the other hand, having a bad credit score will mean higher interest rates and limited options on loans and credit cards. With a poor credit score, you would not be eligible for the best deals that your lender has to provide. In order to qualify for good loans and credit cards you would have to maintain a good credit score.
Additional Reading: Advantages Of A Good Credit Score