If you have been paying off your credit card and loans on time you are demonstrating your ability to responsibly manage your debts. With a clearer picture of your financial situation, credit providers are in a better position to make an informed decision on your application for credit. If you have a very good credit record you may be able to negotiate a better interest rate on your credit account.
On the flip side, CCR allows credit providers to see a consumer’s poor credit history in a more obvious manner and you run the risk of not being approved for credit.