When you have good credit, you are more likely to get approval for loans and credit cards with lower interest rates.
Here is a comparison of the pros of having a good credit score vs the cons of having a bad credit score.
A good credit score may vary depending on the lender. The generally accepted good FICO score is 670 or higher.
When you have a higher credit score, like 670 or higher, the pros or advantages of that credit score are:
• Easier credit approval • Lower interest rates • Higher credit limits • Better loan terms • Low or no deposits
When you have a lower credit score, like 669 or lower, the cons or disadvantages of that credit score are:
• Harder credit approval • Higher interest rates • Lower credit limits • Difficulty getting loans • Higher security deposits
Clearly the pros outweigh the cons, so it makes sense to improve your credit score by paying your bills on time.
Review your credit report to tackle the factors that are hurting your credit score the most and scale up.