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Detailed explanation-1: -Having good credit makes it easier to do many things, including rent an apartment or buy a home or car; sign up for a cell phone plan; or get a student loan. With good credit, you can even save money in the form of lower interest rates or waived fees and down payments when setting up utilities.

Detailed explanation-2: -Many consumers turn to credit when faced with unexpected home or auto repairs, as well as medical emergencies. Credit also offers convenience, enabling you to rent a car or hotel room or buy tickets over the phone or online.

Detailed explanation-3: -Not having a credit score isn’t necessarily bad, but it’s not ideal. It can prevent you from qualifying for loans, credit cards and housing and complicate your ability to rent cars and get cellphone and cable subscriptions. Establishing credit as early as possible is a good way to set yourself up for the future.

Detailed explanation-4: -There’s no set amount of available credit that’s good to have. In general, the more available credit you have, the better, as long as you use it responsibly. During any application process, most lenders will look at your credit utilization ratio instead of your available credit.