A good credit score is your free pass to better mortgage interest rates, lower car insurance, better credit cards, and maybe even a ticket to get that new high paying job. Credit Scores are used all over the place – sometimes this makes sense, in other cases it doesn’t.
Here is an example that shows you what difference your credit score can make. Let’s take a $100,000 mortgage and see how that looks like:
Credit Score: 550
Monthly Mortgage Payment: $822.00
Credit Score: 650
Monthly Mortgage Payment: $670.00
Credit Score: 750
Monthly Mortgage Payment: $598.00
The difference between a 550 credit score and a 750 credit score is $224 per month. Now, most mortgages today are above $200,000 and so your savings (or higher payments depending on how you look at it) add up to almost $450 per month. Don’t let that happen. Go here to check your credit score online before applying for new credit or to save money on your car insurance.
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