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How Your Credit Score Affects You
So just what makes your credit score so important anyway? A high credit score can have major money-saving benefits for you. Lenders will offer those with high scores a lower interest rate on loans and credit cards.
For instance, see how a 25-year mortgage payment could vary based on your credit score and the interest rates it dictates. A difference of two hundred points in score can save $642 a month for the same $200,000 house loan.
| If your credit score is: | Below Average | Average | Excellent |
| Then your monthly payments would be: | $1655 | $1463 | $1279 |
| Totaling a monthly savings of: | - | $192 | $376 |
| Or a yearly savings of: | - | $2304 | $4512 |
Simply stated, an excellent credit score can mean big savings. You can save thousands annually by qualifying for low interest rates. Check your credit report and score today to see where you stand, and always aim to improve your score as much as possible before applying for a new loan or line of credit. Credit scores are important, and by being a good borrower today, you are guaranteed low interest rate in the future!
