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Good credit saves you money

A good credit rating can help you get a loan at a great interest rate but it can also save you money on other expenses. Many insurance companies now use your credit rating to help set your car insurance payment. Some utility companies will pull your credit record to determine whether you have to put a deposit down before starting service. Having good credit can save you hundreds of dollars a year just on these bills.

What are the benefits of having a good credit rating?

A good credit rating:
  • Makes it easier to get loans with good terms.
  • Makes it easier to get credit cards.
  • Makes it easier to start utility service.
  • Lowers car insurance premiums.
  • Is important if you want to buy a home.
A poor credit rating:
  • Means you might not get a loan when you need it.
  • Means you will probably pay higher interest rates on loans.
  • Means you may be turned down for a job.
  • Means you may not be able to rent an apartment.

To learn more about getting a good credit rating, see protecting and improving your credit rating.