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A Good FICO Score Can Save You Lots of Money!
By JLP | April 17, 2007
Check out these numbers I found on the MyFICO website:
As the graphic above shows, having a high credit score can save you lots of money in interest expenses. Just for kicks I took their numbers and calculated how much more a bad FICO score can cost over the life of a 30-year mortgage:
A person with the lowest FICO score will pay almost twice as much interest over the life of their mortgage. Ouch! Of course, a person with the lowest FICO score really has no business buying a $200,000 house. Also, there’s also the chance that a person could improve the FICO score and then refinance their mortgage to a lower interest rate.
The point of all this is to keep your FICO score up!
April 20th, 2007 at 12:21 pm
[...] As the author states, get yourself ONE low-rate credit card and use it wisely. This will help you build up a credit history and if you are RESPONSIBLE, will help your credit score, which will give help you get lower interest rate loans when you buy a house or a car. ALWAYS pay your bill in full and on time each month. FICO loves this kind of stuff. [...]
October 11th, 2007 at 11:05 pm
The same holds true for credit card offers as well– the better your FICO score, the better interest rate you’ll recieve and the more money you’ll save over time.
June 16th, 2008 at 3:33 pm
This is correct! A good credit score can get you lower rates on mortgages. Check out these tips to Get A Squeaky Clean Credit Score
September 4th, 2008 at 8:21 am
[...] your FICO score takes time, but with these techniques, you can see a jump of nearly 100 points in a few [...]
January 4th, 2009 at 6:49 pm
[...] your FICO score takes time, but with these techniques, you could see a jump of 100 points or more in a few [...]