The Advantages of Credit Ratings

• Your credit rating is one of the most important tools at your disposal when it comes to having purchasing power. IS Stock/Valueline/Getty Images

  Your credit rating is one of the most important tools at your disposal when it comes to having purchasing power. Many companies will not sell material goods or services if you do not have a good credit score. Maintaining good credit provides an incentive for some consumers to make their debt payments on time. You are allowed to get one free credit report from each of the three major credit bureaus annually.

Repayment Terms

• When applying for a loan, having good credit can often secure better loan and credit card repayment terms, and you are more likely to be able to secure bank accounts with more prestigious banking institutions.

Getting a Credit Card

• Good credit is often one requirement for securing a credit card. Credit card globe image by patrimonio designs from Fotolia.com

  A good credit score is often one requirement when it comes to being given a credit card. Your credit rating is taken into consideration, along with the length of time you have been employed in your current position, and your payment history on other debt, as reported in a public legal education and information services article on consumer credit.

Contractual Services

• Cell phones and other services are often set up on a contractual plan covering a certain period. One advantage of having a good credit history is that you will probably not have to pay a large deposit to get service, and may not have to pay a deposit at all, depending on the company.

Reputation

• A good credit rating is a precursor for having a good reputation with banks and other financial institutions. Having a good financial reputation will make securing a loan from most financial institutions easier. You may possibly be able to garner a lower down payment when purchasing a vehicle or other big-ticket item using a loan from a bank or credit union.

Renting or Leasing

• Many landlords or leasing agents look at a person's credit rating before deciding to rent to him. apartment for rent image by dead_account from Fotolia.com

  Many landlords and leasing agents look at a person's credit rating, as well as prior rental history, before making a decision to rent an apartment, condominium, or house. To landlords, good credit makes it more likely that you will pay your lease or rent on time, as reported on the Desjardin website.