The advantage and limitation of credit rating are as follows:-

1) People with good credit will have their ability enhanced for the borrowing. Lenders will be able to rewarded or punished by the people with their reports on the habits of their credit responsibility

2) The limitation can occur when the credit information which is been reported or when the identity of the consumer's is stolen. It is really difficult for the lenders to get the information if it is lost or it is very difficult and exhausting process.