 TITLE: Why Do You Want a Good Credit Score? CONTENT: Americans often rely on credit—the ability to buy things with borrowed money that's paid back over time—to finance major purchases, such as buying a car or home, and to make life easier with conveniences like credit cards, which can help you manage your daily spending. To determine whether you qualify for such loans, lenders may look at a number of factors, including your income, debt-to-income ratio, and even employment history.\nBut they also almost always rely on an automated evaluation process that includes considering your credit scores and credit history to determine how likely you are to pay back your debts on time. A credit score is a three-digit number that's calculated by applying a mathematical algorithm to the information in one of your three credit reports (from Experian, TransUnion or Equifax), which are updated regularly with information from your credit accounts. Typically, the higher your credit scores, the more likely you are to qualify for loans with the most favorable terms, including lower interest rates, higher dollar amounts, and potentially lower fees.\nHaving a good credit score comes with many advantages, including:\n### 1\\. Significant Savings on Interest Rates on Big-Ticket Loans\nWhen you take a large loan to finance a big purchase like a home or car, even a small difference in the interest rate can translate into thousands of dollars over the lifetime of a loan. Borrowers with the highest credit scores are generally able to secure the lowest interest rates available at a given time for a mortgage or auto loan. And that can mean big bucks.\nFor example, a 30-year fixed mortgage of $250,000 at 5.5% will cost a borrower a total of $511,010 over the lifetime of the loan. If that same borrower can get a 4.5% interest rate—just one percentage point lower—she will pay $456,017 over the life of the loan, a difference of $54,993.\n### 2\\. Better Terms and Availability on Loan Products\nBorrowers with strong credit scores will have access to the most loan and credit card products available since lenders will want to lend to them. They will be able to shop around and compare rates more effectively. They'll also find the best terms, including higher dollar limits, which can make it easier to finance big purchases.\n### 3\\. Access to the Best Credit Cards\nHigh credit scores will afford you access to the most rewarding credit cards on the market, including those that offer the lowest interest rates and the best rewards, such as cash back offers, travel points, and other incentives. You are also more likely to qualify for an introductory 0% APR purchase and balance transfer offers, which can translate to significant savings over time.\n> Find the best credit cards in Experian CreditMatch™.\n### 4\\. Insurance Discounts\nYou can't be turned down for insurance if you have a low credit score, but having a high score can help you qualify for lower insurance premiums on car insurance.\n### 5\\. More Housing Options\nSome landlords of rental management companies consider a potential tenant's credit scores to determine whether they are financially trustworthy. The higher your credit scores, the more likely you are to be approved for a home or apartment rental. You could also save money on your security deposit if you have higher credit scores.\n### 6\\. Security Deposit Waivers on Utilities\nSome utility companies may consider your credit reports and scores to determine how likely you are to pay your bills on time. If you don't have a strong credit history, you may have to pay a security deposit to initiate utility services. END