You’ve probably heard that having a good credit score is important if you want access to favorable mortgage terms or hope to get a better rate on your next auto loan. But the benefits of a good credit score go beyond borrowing money to meet financial and life milestones.

　　Your credit history can influence employment, your ability to get an apartment, and how much you pay for car insurance. A good credit score can save you money and open the door to numerous benefits.

　　1. EmploymentEmployers likely won’t check your credit score, but they can request a version of your credit history that includes late payments, bankruptcies, and more. Although not every company performs background checks, the reality is that for some jobs, a potential employer may view financial issues as a red flag.

　　If you plan to apply for jobs, review your credit report to know what it contains and ensure there are no errors. Get any mistakes corrected before you begin looking.

　　2. BankingDepending on the bank you choose, opening a checking account may trigger a credit check. Little-known credit agencies specialize in providing information about whether you’ve had a lot of overdrafts or had past accounts closed by other banks. It can be harder to open a checking account if the bank uses one of these bureaus to check up on your banking history.

　　When opening an account, ask if the bank uses a credit agency to learn more about you. The bank might use information from one of the three major bureaus or an alternative bureau. Regardless, find out where the information is coming from and ensure it’s accurate.

　　3. HousingDo landlords check your credit score? Some do. A landlord or rental agency might want to get a feel for how likely you are to pay your rent on time by checking your credit. If your credit score doesn’t fall at least into the “good” category, you may still get approved, but you may pay a higher security deposit. That additional up-front cost may put a crimp on your budget, seeing as you’re footing other major expenses when moving, such as storage, moving supplies, a truck, and more.

　　Knowing your credit score and whether you have any late payments in your credit history can help alleviate any surprises you might encounter when shopping for a new apartment or other rental.

　　4. UtilitiesConnecting utilities like electricity and Internet service can be more difficult if you don’t have good credit. Some providers check your credit to see whether you’ve had problems with missed payments. If they conclude that you might not pay on time and in full, you may need to pay a deposit to get your utilities turned on. Some Internet service providers require a month’s advance payment if you have poor credit.

　　One benefit of good credit is fewer up-front costs, which frees up money for other expenses or to add to your savings account.

　　5. Insurance premiumsWhether your credit score affects how much you pay for car insurance depends on where you live. A few states don’t permit insurers to use your credit history to determine your insurance premium. In states where your score can be used, insurers may view a low score as an indication that you’re at an increased risk and charge you a higher rate.

　　Your homeowner’s or renter’s insurance premium might also be influenced by information in your credit history. Plus, insurers have their own risk scores that they use to decide whether your credit habits are likely to translate into higher costs for them. If you make it a point to maintain good credit, you could save money on your insurance costs each time you renew your current policy or shop for a new one.

　　6. Cell phone plansA credit check may be required before you buy a new cell phone or switch service providers. If so, the benefits of good credit can help you qualify for a new phone without an up-front payment or avoid a security deposit. Depending on the service provider, poor credit might require you to pay in advance, which may strain your budget.

　　7. Interest costsOne of the biggest benefits of good credit is the ability to get lower interest rates on your loans. If you’re looking to buy a house or a car, you’ll likely need to use credit to purchase it—unless you’re among the fortunate who can pay cash. You might also need a credit card or personal loan to cover unexpected costs down the road.

　　When you have good credit, you can get a lower interest rate, meaning you pay less when you borrow money. Depending on the size of the loan and the length of time you’ll be paying it back, that can mean a savings of hundreds or even thousands of dollars.

　　Plus, you’ll be more eligible for better credit card reward programs and zero annual percentage rate (APR) deals when you have good credit, potentially saving you even more money.

　　The bottom lineThe benefits of good credit go beyond simply being able to get a loan. For many service providers and others, your credit history is a stand-in for your financial reputation. Companies use that information to determine whether you’re likely to be a good employee, tenant, or other risk. Having good credit can expand your options in various areas of your life.

　　You can build a good credit history by making your payments on time and in full. You might also get a credit card you can use for small expenses and pay off each month. By developing good habits and building a credit history, you can position yourself for the best deals, whether you’re getting a new cell phone, buying a new car, or applying for a mortgage.

　　References[PDF] List of Consumer Reporting Companies | consumerfinance.gov