Having a good credit score is crucial for maintaining a healthy financial status. Your credit score is a numerical representation of your creditworthiness and is used by lenders to assess the risk of lending you money or extending credit. A higher credit score can lead to better interest rates and more favorable terms on loans and credit cards, ultimately saving you money. On the other hand, a low credit score can result in higher interest rates, difficulty in obtaining credit, and even being denied for loans or credit cards.

For example, let's say two individuals apply for a mortgage. One has an excellent credit score of 800, while the other has a fair credit score of 650. The individual with the higher credit score is likely to qualify for a lower interest rate, potentially saving thousands of dollars over the life of the loan.

References:

• Federal Trade Commission - Free Credit Reports
• Consumer Financial Protection Bureau - What is a credit score?