Low credit score is usually the result of late payments, collections and charge-offs. It means that your credit application would be either turned down  or you would be offered unfavorable loan conditions with high interest rate. The higher your credit score is, the better  loan conditions you would get and the higher sums of money you could borrow. If your credit score is high, you are considered a “prime borrower” and will have no difficulty in obtaining financing on favorable terms.