Why Is A Credit Score Important ?

Why Is A Credit Score Important yet so confusing ?: "Your credit score is a result of credit agencies gathering your credit information, as reported by your creditors every month. They use large databases to calculate a rating about you and your credit behavior.
In fact the three major credit reporting agencies Equifax, TransUnion and Experian set the credit reporting standard for major banks, lenders and credit companies. That's because they use an accurate formulation known as FICO. This stands for Fair Issac and Company and the FICO score utilizes many factors that determine credit scores. Besides the financial industry, the insurance and even employers are using credit scores as a way of determining your historical activity regarding credit is rated.
Here are some of the factors in determining your score:
Payment History
Amounts Owed
Length of Credit History
New Credit
Types of Credit in Use"