If you manage your money wisely and make good decisions when it comes to handling your debts, you can establish a good credit history. This, in turn, may help you secure a high , demonstrating your trustworthiness to potential lenders.

Though other factors like current income are checked by lenders whenever someone applies for a new credit card or loan, your credit history can be on the list of things to check. Those with good credit scores may sometimes have a better chances of approval and can therefore enjoy benefits like lower interest rates and higher credit limits.

But on top of enjoying the perks of regular credit services and small-time loans, you can also leverage the power of a good credit score to take advantage of many other services that can help you achieve your financial objectives.

Here are some of them:

Buying a home: When you have a good credit score, you can be more likely to be approved for a housing loan. An excellent rating may also lead to significant savings due to lower interest rates, which lenders are more than willing to offer to people with such credit scores.

Renting a home: Those who choose to rent a home instead of buying one can also benefit from an excellent credit score. Landlords often consider it to determine if one can really pay one’s rent. A bad credit score will certainly not make you look good as a potential tenant (especially if it was due to your inability to pay past rents).

Purchasing a car: Applying for an auto loan when you have a good credit score can mean greater negotiating power for lower interest rates. Auto insurance companies may be more willing to offer you lower insurance premiums compared to people with bad credit scores.

Paying for public utility services: You may have an easier time receiving services if you have a good credit history. And, depending on whether or not your credit history is good, you may have an easier time getting other types of credit.

Getting a job: How can affect your chances of employment, you ask? Certainly, not all employers will check an applicant’s credit score when deciding whether to hire the applicant or not, but some of them do.

For instance, hiring managers in accounting firms might look into a potential employee’s credit score to determine that person’s ability to manage personal finances, which can reveal a lot about how the applicant may perform at work. Other employers may see credit history as a good measure of an applicant’s trustworthiness and sense of responsibility.