Question

Why is it important to establish a good credit rating?

A.
It will save you money in interest rates and other fees.

B.
It will enable you to buy more things on credit.

C.
It will help you get more cards at higher interest rates.

D.
It will help you dispute false charges on your credit statement.

Answer 1

A. It will save you money in interest rates and other fees.

A good credit rating signals low risk to lenders, so you qualify for lower interest rates, better loan terms, and fewer fees — which saves you money.