The tyranny of the credit score is a relatively new phenomenon. The more metrics that are added to our digital profiles, the more we find common sense actions under normal circumstances, like cutting credit cards with excessively high APRs, are not currently advisable, as they can have a negative impact on our credit scores.
The basis for calculating the Default Premium (See: Default Premium), is called the "Default Probability." For individuals, a credit score is a basis for calculating default probability and can affect a mortgage rate quote, a car loan quote, or an approval over an apartment rental.
On the corporate level, a higher default probability is ascribed to lower ratings from Moody’s and S&P, and higher yields.