Credit Stats

1. Lower Interest Rates: According to Experian, individuals with excellent credit scores (800+) can qualify for lower interest rates on loans and credit cards. For example, the average interest rate on a 30-year fixed mortgage for someone with an excellent credit score in 2021 was 2.69%, while the average interest rate for someone with a fair credit score (580-669) was 3.75%.

1.  Individuals with good credit scores are more likely to be approved for credit cards, loans, and other financial products. According to the Federal Reserve, the approval rate for credit card applications was 85.4% for individuals with excellent credit scores in 2020, compared to just 15.7% for individuals with poor credit scores (below 580).

1. Some employers may check an applicant's credit report during the hiring process. According to a survey by the National Association of Professional Background Screeners, 47% of employers conduct credit checks as part of the hiring process. Having good credit can help you stand out as a responsible and trustworthy candidate.

Some insurance companies use credit scores to determine insurance premiums. According to the Federal Trade Commission, individuals with higher credit scores may be eligible for lower insurance premiums on auto, home, and renters insurance.