What are some benefits of having a good credit history?
Andrew Campbell
Updated on February 15, 2026
What Are the Benefits of a Good Credit Score?
- Get Better Rates on Car Insurance.
- Save on Other Types of Insurance.
- Qualify for Lower Credit Card Interest.
- Get Approved for Higher Credit Limits.
- Have More Housing Options.
- Get Utility Services More Easily.
- Get a Cell Phone Without Prepaying or Making a Security Deposit.
What does a good credit history do for consumers quizlet?
If you have a good credit score, lenders are more likely to give you loans or credit cards at lower interest rates.
What does a good credit history do for consumers apex?
Credit history shows how reliable a borrower is in repaying loans. A good credit history indicates that a person pays their debts on time. A customer with a good credit history manages their income and debts properly and is considered a low-risk borrower.
Why is a person credit history important?
Credit scores determine whether you get loans and the rates you pay. Your credit scores determine a lot more than the loans you can get and the interest rates you pay. Credit scores determine who gets the best cell phone plans and who has to make bigger deposits to get utilities. …
What can you do to make your credit score strong?
How do I get and keep a good credit score?
- Pay your loans on time, every time.
- Don’t get close to your credit limit.
- A long credit history will help your score.
- Only apply for credit that you need.
- Fact-check your credit reports.
What’s the lowest possible credit score?
300 to 579
For FICO, the lowest credit score range is 300 to 579; the lowest credit score range for VantageScore is 300 to 499.
What are the benefits of a good credit history?
Credit history is a roadmap of a consumer’s ability to handle borrowing money. Consumers will reap rewards for having a good credit history—from being offered lower interest rates on mortgage loans to lower rates on car insurance.
How is credit history used to determine credit score?
Potential creditors, such as mortgage lenders and credit card companies, use the information in a consumer’s credit history to decide whether to extend credit to that consumer. The information in a person’s credit history is also used to calculate his or her FICO score.
Why is it important to have a good credit score?
Build credit to receive the best interest rates. The consumers who receive zero percent interest or a low interest rate have proven their creditworthiness to lenders. Not only do these consumers have high credit scores, but they also have a great deal of established credit on their credit reports.
What can I do to build my credit history?
To help build a credit history, ask your landlord and your service providers to report your positive bill-paying record to the credit reporting agencies. Another option could be to use a rent reporting service, or a program like Experian Boost, which reports alternative payments.
