What is a key benefit of maintaining a good credit score?

Maintaining a good credit score is crucial because it significantly impacts the interest rates offered on loans. Lenders view individuals with high credit scores as lower risk borrowers, which often leads to more favorable loan terms. This includes access to lower interest rates, ultimately reducing the total cost of borrowing over time.

For example, if two individuals apply for the same loan amount, one with a good credit score and another with a poor credit score, the one with the higher credit score will likely receive a lower interest rate. This not only makes monthly payments more manageable but also allows for substantial savings in the long run.

In contrast, the other options reflect negative outcomes or misunderstandings associated with credit scores—being denied credit, an increase in monthly bills, or the ability to take out more unsecured loans—do not highlight the positive financial advantages of maintaining a good credit score.