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.
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.