The Wu Tang Clan had a big hit with CREAM, which stood for “cash rules everything around me,” but in the modern world the C should really stand for “credit.” There are few things about your life which mean more and yet are less transparent than your credit score. While it’s common knowledge that your credit score plays a big part in determining what kind of options you have when seeking new financing or credit lines, that is far from the only way your credit score can affect your life. Here are the best reasons to work on building your credit with responsible borrowing.

Higher Credit Limits

If you are looking to make an expensive purchase the two most important factors lenders will want to see are proof of income and your credit score. Higher credit scores grant you access to higher credit limits so if you’re looking to make an expensive purchase like a home or car, improving your credit score can significantly widen your possible options to pick from.

Rent More Easily

One area where people often overlook the importance of their credit score is when searching for a home or apartment to rent. Because your landlord wants to be sure that they are going to receive their rent checks on time every month it is standard procedure for a credit check to be run. Some landlords won’t rent to individuals with low scores, while others will simply require a larger security deposit or an additional month of up-front rent to compensate for your low score.

Find Better Work

Although companies are not allowed to run your credit without your permission, many potential employers will request a check and declining may be viewed negatively. If you are in close competition with a similar applicant your potential employer may opt to hire the individual with better credit. Working now to improve your credit score can pay off in a better job in the future when your employer sees your improved record.

Better Interest Rates

The benefits of higher credit scores when borrowing don’t stop with getting more money from your lender. If you are seeking affordable auto financing or home financing then every point you save in interest can translate to a massive amount of money over the duration of your loan, and the higher your credit score is the more likely you are to get better terms. For a loan like a mortgage where you will be paying the balance off over potentially decades, this means saving thousands of dollars in interest which does not accrue because you are paying at a lower interest rate.

Better Insurance Rates

If you own a car that means you are paying a monthly bill to your insurer in order to keep your car street legal and protect yourself in the event of an accident. One thing many drivers don’t realize is that some companies will offer improved insurance premiums to drivers who have strong credit scores.

Although it is a false assumption to take for granted that someone with low credit is irresponsible, the unfortunate reality is that doesn’t stop many important institutions from behaving as if it were true. That means that raising your credit score if it has dipped is vitally important. When a higher score can mean paying less interest while having lower insurance premiums at a higher paying job, it’s easy to see how the benefits of improving your score can compound to reap massive rewards. Whether your credit is low or simply has room to be even higher, it’s always a good decision to make sure you’re doing the right things with your credit by never missing a payment and sending in more than the minimum if possible in order to lower your overall debt and raise your credit score.