The link between credit and financial health is crucial to understand for maintaining a stable financial situation. Credit plays a significant role in determining an individual's financial well-being, as it affects their ability to access loans, mortgages, and other forms of credit. A good credit score can lead to lower interest rates and better terms on loans, while a poor credit score can result in higher interest rates and limited access to credit.

For example, someone with a high credit score may be able to secure a mortgage with a lower interest rate, saving them thousands of dollars over the life of the loan. On the other hand, an individual with a low credit score may struggle to qualify for a mortgage or may face higher interest rates, making homeownership more challenging and expensive.

Understanding the link between credit and financial health can help individuals make informed decisions about their financial management. By maintaining a good credit score through responsible borrowing and timely payments, individuals can improve their financial health and access better financial opportunities.

References:

• "How Your Credit Score Affects Your Financial Health" - Forbes
• "The Importance of Credit Scores for Financial Health" - Experian