A Good FICO Score Can Save You Lots of Money!

April 17, 2007

Check out these numbers I found on the MyFICO website:

FICO

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:

Mortgage Payments

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!

5 responses to A Good FICO Score Can Save You Lots of Money!

  1. 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.

  2. 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

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