Which of the following is a benefit of maintaining a good credit score?

Maintaining a good credit score is crucial for financial health, and one of its primary benefits is that it provides more borrowing options and lower interest rates. When individuals have a high credit score, lenders perceive them as lower-risk borrowers. This perception leads to broader access to various loan products—such as personal loans, credit cards, or mortgages—because lenders are more willing to extend credit to those who have demonstrated responsible financial behavior.

Furthermore, a good credit score typically results in more favorable interest rates on loans. Lenders often reward borrowers with higher credit scores by offering lower rates, which can lead to significant savings over the life of a loan. Lower interest rates reduce the overall cost of borrowing, making it more manageable for individuals to repay their debts.

The other options do not accurately reflect the benefits associated with a good credit score. Higher insurance premiums and taxes on income are generally not connected to credit scores in a direct manner, while a good credit score does indeed influence loan approvals, contrasting the notion that it has no effect. This understanding highlights why maintaining a good credit score can be significantly advantageous in achieving better financial outcomes.