Reasons to Raise Your Credit Score
posted on February 25, 2008 5:17 PM | Permalink
Do you want to save hundreds or thousands of dollars on loans? Your credit score can make a big difference! The amount you pay for a big-ticket item on credit can be quite different for someone with a high score compared with someone with a low score. Consider this: As of August 22, 2007, if you had a FICO score of 760-850, the highest bracket, you'd pay $1832 for a 30-year fixed rate $300,000 mortgage loan at 6.172 percent. But if you had a score of 500-579, the lowest bracket, you'd pay a whopping $2674 for that same mortgage, which would be at 10.188 percent. That's $842 more every month, $10,104 per year! These comparisons demonstrate how costly it is to have a low credit score and how much money a high credit score can save you.
The payoffs don't stop at lower interest rates on loans - with a high credit score you'll get quicker credit approval, reduced deposits required from utility companies, and approval for apartment rentals.
