Reputation is like rest of wolrd see you. For example, a good reputation can do more easy get farmers recruit, and a bad, do more easy get thiefs and murders.
Good reputation can give best prices with merchants, but with bad reputation they think you are a bandit.
etc...
Bad reputation is fear too, if you kill all population in a place you conquested, maybe your next conquest is more easy to defeat by negociation, but it can be worse too, if that place choose fight until last men.
Kill cristians prists, looting. I don't know I always play with love and I hardly ever do bad things. My honor is 50. Also don't loot graves of all warriors that makes you lose -30 of honor
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