What does my credit score actually affect?

Your credit score affects your ability to borrow money and the terms you get when you do. Lenders use it to decide whether to approve you for credit cards, auto loans, mortgages, and personal loans, and a higher score typically means lower interest rates, which can save you thousands of dollars over time. Beyond borrowing, landlords often check credit scores before renting to you, and some employers review credit history for certain positions. Insurance companies in many states use credit-based scores to set premiums for auto and home insurance. Utility companies may require a security deposit if your score is low. Essentially, it signals to businesses how financially reliable you are, influencing costs and access across many areas of daily life.