When it comes to managing your finances, it can be hard to know the best strategies to maximize your financial well-being. A key component of achieving financial stability and success is having a good credit history. Credit history is measured by your credit score, something that lenders, like banks, credit card companies, and even employers and landlords use to determine your reliability when it comes to handling financial instruments. Your credit score is a three-digit number that reflects the information in your credit report, and it’s important that you understand how it works and what you can do to improve it.

In addition to helping you get access to financial products like loans or lines of credit, a good credit history and score also have a number of other benefits. Here are some of the positive outcomes that come with having a good credit score:

1. Lower interest rates: One of the biggest perks of having a good credit score is that you can qualify for lower interest rates from lenders. This means you’ll have less money to pay back the money you borrow, making it easier to afford the loan.

2. Easier to get approved: Lenders are more likely to approve applications from people with good