What a ‘Good’ Credit Score Can Get You in 2026 — From Lower Rates to Easier Approvals

Core Insights - The importance of credit scores is expected to increase significantly by 2026 due to rising household prices and high interest rates, making loan approvals critical for consumers [1] Group 1: Credit Score Overview - A credit score is a three-digit number ranging from approximately 300 to 850, indicating the likelihood of repaying borrowed money [2] - Scores in the "good" range (around 670-739 for FICO models) are viewed as less risky by lenders, leading to various financial benefits [2] Group 2: Loan and Credit Approvals - Higher credit scores facilitate easier approvals for loans and credit cards, signaling reliability to lenders [3] - A good credit score allows consumers to have more options when selecting loans, as lenders compete for lower-risk borrowers [3] Group 3: Interest Rates and Loan Terms - Strong credit scores provide access to lower interest rates, as lenders prefer working with lower-risk customers [4] - Even a small difference in mortgage rates can result in significant savings over the life of a loan, potentially saving tens of thousands of dollars [5] Group 4: Credit Cards - A good credit score increases the likelihood of approval for credit cards with the best introductory offers and lowest interest rates [6] Group 5: Insurance Costs - Higher credit scores can lead to lower insurance premiums, as many insurers use credit-based scores to assess risk [7] - Consumers with strong credit typically file fewer claims, resulting in lower premiums for auto and homeowners insurance [7]