| Over a third of consumers have no idea what their | | | | to a consumer with a 635 will pay just under $300 |
| credit score is. And even those that do only have a | | | | more a month on a $300,000, 30-year fixed mortgage. |
| general idea of what range they believe it to be in. The | | | | That adds up to over $106,000 over that 30-year time |
| thing is that your credit score can drastically affect | | | | frame. I'm sure $300 more a month in your bank |
| how much money you have to budget each month. | | | | account could be put to good use. |
| One Slip Up Can Tank Your Score | | | | When dealing with an auto loan, the savings that a |
| According to FICO, the company whose formula is | | | | top-notch credit score gets is just as substantial. A |
| used in the majority of credit scoring models, even one | | | | difference of just about 100 points can cause the APR |
| missed payment can reduce your credit scores by | | | | you receive from about 5% to over 20%. In terms of |
| over 100 points. So even those that think they know | | | | dollars that's close to a $200 increase a month, or |
| their scores might not realize just how damaging a | | | | over $7,100 total on a 3-year, $30,000 auto loan. |
| recent mistake might be. | | | | Why Looking at Your Credit Scores is Crucial |
| Where your credit card balances are is also a huge | | | | The higher your credit score, the lower your monthly |
| factor. Credit scores can drop off 50 points or more | | | | payments are bound to be. That's why it's important to |
| over the course of a month because you've maxed | | | | see where you stand in the eyes of lenders before |
| out your cards. These are the types of little tips that | | | | you apply for a loan or even a credit card. Spending a |
| credit card companies and lenders never tell you. And | | | | month or two repairing bad credit can mean a |
| they could make all the difference with your finances. | | | | difference of hundreds of dollars each month. |
| Higher Credit Scores Mean Lower Interest Rates | | | | Most people simply apply and assume that the rates |
| Your score doesn't only control whether you'll be | | | | that they received are the best that they're going to |
| approved for a loan or a credit card. It also affects the | | | | get. Once you've improved your scores, through credit |
| interest rates that you'll pay if and when you're | | | | repair or just with proper credit card usage, you can |
| approved. While the interest rate might not really cross | | | | shop around and have lenders actually compete for |
| your mind when you're applying, the difference in | | | | your business by offering the best rates available. Isn't |
| monthly payments can be quite considerable, so it | | | | it worth checking to see if your credit scores can be |
| might be best to keep your eye on that. | | | | improved if you could save yourself that kind of |
| On average, someone with a score of 765 compared | | | | money? |