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• Get approved for loans and credit cards. Lenders use your credit score to assess your risk as a borrower. The higher your credit score, the less risky you appear to be, and the more likely you are to be approved for a loan or credit card. You will also be offered better interest rates and terms on loans and credit cards with good credit.
• Get lower interest rates on loans and credit cards. As mentioned above, lenders offer lower interest rates to borrowers with good credit. This can save you a significant amount of money over the life of a loan or credit card.
• Qualify for better insurance rates. Your credit score can also affect your insurance rates. People with good credit typically pay lower insurance rates for things like car insurance, homeowners insurance, and life insurance.

In addition to these three reasons, good credit can also help you:

• Get a job. Some employers use credit scores as part of their hiring decisions.
• Rent an apartment. Landlords often check credit scores to assess a tenant’s ability to pay rent on time.
• Get a cell phone contract without a security deposit.
• Open a utility account without a security deposit.

Building and maintaining good credit takes time and effort, but it is worth it. By following some simple tips, you can improve your credit score and reap the benefits of good credit for years to come.