Having a good credit score and good credit history is essential for obtaining a loan, making a large purchase, and accessing some of life's necessities. Credit scores are important because lenders use them to determine a consumer's risk for repayment. People with good credit typically have an easier time getting approved for bank loans and credit cards, renting a home, and purchasing major appliances such as cars and homes.

Good credit means that you have a good payment record, no missed payments, and have borrowed responsibly. A good credit score can be obtained by having a manageable amount of debt, paying bills on time, and not over extending credit. The higher your credit score is, the more credibility a lender has in you. A good credit score has many advantages, such as:

1. Lower interest rates on loans: Banks and lenders trust individuals with good credit scores and, in return, offer better interest rates. With lower interest rates, repayment of debt and more savings on interest can be obtained through currently existing debts or even future loans.

2. Increased borrowing ability: A good credit score makes it easier to take out large purchases such as cars and homes. A higher credit score gives lenders more confidence in one being able to make payments and having little risk associated with an individual.

3. Peace of mind: Knowing your credit score is in good standing can give one peace of mind. Knowing that one’s current financial commitments are not jeopardizing any future opportunities is important.

4. Better Apartment/Rental Opportunities: A good credit score will give one a higher chance of getting approved to rent an apartment or house. Many landlords check potential tenant’s credit scores and may charge higher deposits for those with lower scores.

5. Increased Employment Opportunities: Now, more than ever, employers are looking at an individual’s credit score when making hiring decisions. A good credit score shows that an individual is financially responsible and can make good money decisions.

6. Insurance Savings: Having a good credit score can often result in insurance companies saving money on their premiums.

Making sure to have a good credit score starts with being financially responsible and conscious of one’s financial decisions. Having a good credit score can open up numerous doors and give one a clear advantage over those with lower scores.