A good credit score indicates that you’re a low-risk borrower, leading to major savings over the long term—it allows you to score better rates on car loans, mortgages, credit cards, and anything else that requires financing. Those with a poor credit score are considered high-risk borrowers and are ultimately subject to higher interest rates and fees for any new account. Additionally, a good credit score is necessary to be approved for things like rental housing, car rentals, or a mortgage.
Once you’ve reviewed your credit reports and determined exactly what’s hurting your score, you’ll have a better idea of how to increase your credit score.