What is the real cost of bad credit?
Bad credit can be extremely expensive. It can mean you have high interest rates, making the cost of your debt much higher than it should be. It can also mean hundreds of thousands of dollars more when financing a home. Here is an example of how much you can save on a $300,000 30-year, fixed rate mortgage by improving your score. 720+ FICO Score: $1,818 Monthly Payment & $354,405. Under 620 FICO: $2,477 Monthly Payment & $591,543. If your FICO score is currently below 620, you could save the following amounts by INCREASING YOUR SCORE: * If your score improves to 720-850, you could save an additional $318,329 over the life of the loan. * If your score improves to 700-719, you could save an additional $300,026 over the life of the loan. * If your score improves to 675-699, you could save an additional $254,956 over the life of the loan. * If your score improves to 620-674, you could save an additional $154,896 over the life of the loan. (The chart above is produced by myfico.com and the r
