Building good credit is an important financial tool for anyone seeking to purchase a home, vehicle, or obtain other forms of financial assistance. While it can be difficult to understand the process of building credit, there are many positive benefits to having a solid credit history. Having good credit can lead to better interest rates and loan approval, improved access to loans, and lower insurance premiums.

Good credit allows borrowers to receive more favorable terms on loans. Those with good credit may qualify for lower interest rates, fees, and even loan approval. This can save borrowers thousands of dollars in the long run. For example, someone with good credit who is looking to buy a car and get a loan may be able to get a car loan at a lower rate than someone who has bad credit. Similarly, those with good credit qualify for lower mortgage rates as well as lower insurance premiums.

Those with good credit can also have increased access to other forms of financial assistance such as small business loans, student loans and credit cards. Good credit can also help borrowers to qualify for apartments or leases. Landlords are likely to conduct a credit check when they’re considering rental applicants, and having a good credit score can help make the decision in a potential tenant