[dropcap]M[/dropcap]oney doesn’t grow on trees, so it’s important to have a good credit score. A low credit score hurts your ability to get loans and if approved, your going to pay a higher interest rates! Credit scores are also used for insurance rates, renting and even employment.
A poor credit score can cost you hundreds of thousands of dollars over your life. Enter in your estimated FICO score and a loan amount below to see how much a poor FICO score can cost you on your mortgage or any other loan. If you are a home owner or looking to buy, raising your FICO score is the most important thing for you to do. A better score not only means lower payments, but it can mean a bigger house, the chance to take out more money on a refinance, or even the difference between being able to buy.
Your Credit Score Affects
- Homeowner’s Insurance
- Car Insurance Payments
- Car Loan Payments
- Personal Loans
- Mortgage Refinance
- Job Opportunities
Comparison: Prime vs. Subprime Loan Costs
FICO | Term | Principle | Interest Rate | Payment | Total Paid | Good Credit Saves You |
---|---|---|---|---|---|---|
Average Auto Loan | ||||||
740-850 | 60 | 30,000 | 1.99% | 525.70 | 31,542.09 | |
680-739 | 60 | 30,000 | 4.79% | 563.26 | 33,795.31 | 2,253.22 |
620-680 | 60 | 30,000 | 9.99% | 637.26 | 38,235.82 | 6,693.73 |
580-619 | 60 | 30,000 | 15.99% | 729.38 | 43,762.94 | 12,220.85 |
<618 | 60 | 30,000 | 23.99% | 862.86 | 51,771.89 | 20,229.80 |
Best rates as of November 2012 |
FICO | Term | Principle | Interest Rate | Payment | Total Paid | Good Credit Saves You |
---|---|---|---|---|---|---|
Average Home Loan SD County, 30-yr fixed | ||||||
760-850 | 360 | 350,000 | 3.016% | 1,478.64 | 532,308.98 | |
700-759 | 360 | 350,000 | 3.248% | 1,522.84 | 548,221.66 | 15,912.69 |
680-699 | 360 | 350,000 | 3.433% | 1,558.60 | 561,094.44 | 28,785.46 |
660-679 | 360 | 350,000 | 3.656% | 1,602.29 | 576,825.34 | 44,516.36 |
640-659 | 360 | 350,000 | 4.105% | 1,692.21 | 609,195.47 | 76,886.49 |
620-639 | 360 | 350,000 | 4.675% | 1,809.98 | 651,591.66 | 119,282.69 |
< 619 | 360 | 350,000 | 9.900% | 3,045.67 | 1,096,440.60 | 564,131.63 |
How much is your credit costing you? |
Source: creditabsolute.com