A good credit score is a useful financial tool that makes it easier to access credit when you need it. Both loans and credit cards typically have minimum credit score requirements, and interest rates are typically more favorable for those with higher scores.

High credit can make it easier to get a favorable rate on an auto loan—people with excellent credit can have rates up to five times lower than people with fair credit. A good credit score could also save you thousands of dollars in interest on a mortgage by providing you with a lower interest rate.

Credit scores can also influence other areas of your life, like renting an apartment or getting a job. And the ability to access credit cards with strong perks and rewards can create value out of money you would have spent regardless.

Overall, a higher credit score can have a positive influence across many areas of your life. Some important areas of credit, like car loans and mortgages, are generally inaccessible to people with poor credit scores, so taking the time to build your credit score can be valuable in the long run.