Importance of having good credit

You should regularly review your credit reports and scores so that you know what to expect when shopping for the best deals on new loans and lines of credit. A good credit score can save you money by helping you qualify for low-interest mortgages, car loans, and credit cards. Lenders are more likely to offer lower interest rates to those with high credit scores because they signify a history of good credit behavior. Lower interest rates mean you’d pay less in interest each month on your credit cards, cars, home, and personal loans. These savings can mean you pay hundreds or even thousands less to your creditors each year.

Having good credit saves you money even if you aren’t applying for a new loan. It can help you get that great deal on an apartment, that high-paying job you interviewed for, lower car insurance and even life insurance premiums. It can also keep you in the good grace of with your existing creditors, making it less likely that they’ll ratchet up your interest rate.