How much does your credit score really cost you?

Rates fluctuate. Below you will find example rates pulled off the MYFICO website. Regardless of what rates are, these general rules typically apply. For the most part, when you’re in the low 600 credit score range, you lower your interest rate by a half point for every 20 point increase to your credit score ($75 a month or $27,000 over the life of your loan (for a 250k loan). Once you’re above a 660, it’s about a quarter to an eighth point per 20 score points ($37 a month) up to a 760.

$250,000 mortgage loan on a 30 year fixed loan

760-850     4.259%
700-759     4.481%
680-699     4.658%
660-679     4.872%
640-659     5.302%
620-639     5.848%

Check this fun math out, the difference between a 639 and a 700 (which really isn’t much) over the life of this loan is about $87,612 in interest. Then, add in all your auto loans, credit cards, auto insurance, PMI and bank loans, who really blast you with higher interest rates over that same 30 years, and this could easily equate to $200,000 or a lot more. Now you are looking at an additional 300K in interest over 30 years. Now look at this gem, you have a staggering $200,000 less to invest over 30 years…a massive opportunity lost (something nightmares are made of). Conservatively, you could earn $400,000 with that money over that time frame. Add that to the amount you paid in additional interest in the first place and slightly lower credit scores over just 30 years could cost you well over HALF OF A MILLION DOLLARS. If you earn more than the average wage of 60K a year, after tax, it would take you 10 years of work to make up the difference… Isn’t it worth getting your credit scores up?

Absolutely is the answer to that question, so take care of your own repair needs and refer over your mother your brother and anybody else you can get your hands on and allow us to do our magic. Please call 866-488-2066 and don’t forget to pass along your referral source to qualify for a $100 discount which is over 50% off our initial fees.