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You already know the importance of keeping down debt and making credit card and bill payments on time. But are you aware of the perks that come with having a good credit score? If not, here’s a helpful primer.

1. Credit Cards With Rewards

Rewards credits cards, including those for hotels, cash back and airline miles, are typically issued to borrowers with good credit, who are seen as reliable. (Most credit scores define good credit as a score that falls somewhere between 700 and 749; excellent credit is a score of 750 and up.) Though each lender defines “good credit” differently, anyone who has access to these cards is certainly rewarded for their spending behavior. Credit cards with rewards can help cardholders rack up points and miles that can in turn be redeemed for free flights, gift cards, hotel upgrades and much more. Who says you can’t save on travel?

2. Lower Interest Rates

For many homebuyers, their credit score is the only thing standing between them and an affordable mortgage. That’s because the better their score, the better their shot at securing reasonable terms and conditions on the loan, not to mention a lower interest rate. Having a lower interest rate tied to a loan saves money over the long run, which can add up to real savings; just think of the thousands of dollars you could put toward retirement, home repairs or college loans. And we’re only just talking about mortgages. Lower interest rates help you save on auto and personal loans as well.

3. Ticket to Ride

You guessed it: One of the biggest factors in determining your car insurance rates isn’t your driving record. It’s your credit. When someone applies for auto insurance, the insurer will ask to check your credit score under FCRA regulations. They’ll then pull your report to get an idea of where your insurance risk stands. The reason: Insurers cite studies that have shown having good credit tends to indicate whether a person is more likely to file an insurance claim. Not sure that your credit is up to snuff? You can view your free credit scores by signing up for an account on Credit.com.

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