When it comes to financial security, having a good credit score is key. While many people focus on avoiding the consequences of a low credit score, there are several paying long-term dividends of having a good credit score.

First, having a good credit score makes life easier when it comes to securing loans. Banks and other financial institutions use your credit score as an important factor when deciding whether to approve a loan. A good score improves your chances of getting approved and may even result in better loan terms, such as a lower interest rate.

A good credit score can also help you save money when it comes to insurance rates. Insurance companies will often look at a person’s credit history to determine whom to extend coverage to and what rate to grant them. Having a good credit score can mean paying lower rates for both auto and homeowners insurance.

Even more significant savings can come with good credit. Many utility companies offer a “good credit” discount to customers with a strong credit score. The discount could save a customer hundreds of dollars over the life of their service with the company.

Finally, having a good credit score helps protect your identity. It prevents identity thieves from impersonating you and obtaining credit in your name. When prospective lenders look at a credit report, their first priority is to make sure it’s you they are dealing with. Picture identification (driver’s license for instance) can provide some assurance, but a good credit score is yet another layer of identity protection.

Given the long-term benefits of maintaining a good credit score, such as potential loan approval and savings on insurance and utility bills, it’s an important step in financial security. Take measures now to repair bad credit and build a strong score. It will pay dividends in the long run.