Why Does My Credit Matter?
When buying a home, you will be borrowing money from a bank or other lending institution. This kind of loan is called a “secured loan” because it is secured by something else, in this case - a house - an asset with a value attached to it. It is unlike a credit card which is an unsecured loan and hence has higher interest rates.
Unless your relative is lending you the money (in which case, lucky you!) the bank has no way to know whether you will pay the money back and make your mortgage payments on time without checking your financial profile. Along with your income verification and other assets, your credit score is a major factor in assessing the amount of risk you would be to a lender.
