7 Advantages of Credit and the Benefits of Building Good Credit

If you’re wondering whether or not it’s crucial to build good credit, the examples below show why you should have it. From a financial perspective, there are many situations where having good credit can save you thousands of dollars over the long term.

This rationale serves as the most important reason to build good credit. Those with excellent credit typically qualify for the best loan terms. Meaning, if you have good credit, you will generally receive lower interest rates than someone with bad credit.

1. Best Loan Terms

Some credit card rewards offer hundreds of dollars in bonuses, statement credits, free nights in hotels, and more. However, these perks and the ability to travel hack using them are typically reserved for people who have excellent credit scores.

2. Qualify for Better Credit Cards

If you live in a competitive area, landlords are more likely to choose a tenant with an excellent credit rating and a history of on-time payments.

3. Apartment Hunting

If you have a good credit score, you can often set up your utilities without making a deposit. This is nice, as you get to keep your cash in your pocket.

4. No Deposits Needed for a Utility Company

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