In 2023, the average U.S. credit score reached 715, which is considered good but not exceptional. A higher credit score, particularly a FICO score of 740 or above, can open doors to numerous financial advantages beyond just lower interest rates on loans and credit cards. For instance, individuals with strong credit scores may find it easier to rent homes, as landlords often use credit checks to assess reliability. A good credit score can also eliminate the need for utility service deposits, saving money upfront. Interestingly, even life insurance companies may offer better rates to those with high credit scores, as they perceive them as lower-risk clients. To maintain or improve your credit score, focus on timely bill payments, reducing credit card balances, and regularly checking your credit report for errors. By doing so, you can continue to reap the benefits associated with a high credit score.
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