What is a credit score worth to you? What does it matter whether you have a 720 score or a 695? It’s only 25 points? Well according to MyFICO, a division of Fair Issac, this 25 point difference could cost you almost $31,000 in extra interest payments over the life of the loan. So, in other words, in this situation each point is worth $1,200.
According to a Bankrate.com article:
The consumer with a FICO score between 620 and 674 might get a 7.734 percent rate … That’s $55,947 more than the middle-score borrower and $86,949 more than the borrower with excellent credit.
So, what is a credit score worth to you? I know its worth a lot to the lender.
Readers of this blog know I’m not a big fan of using credit improvement agencies. I know certain people can benefit, but for most people it’s not going to be that difficult to reign in on other credit.
Last month, I wrote an article over at Christoph Schweiger’s blog on the Seven Easy Steps To Completly Destory Your Credit . If you do the exact reverse of what I say you’ll be on the right track.
However, for those who want some customized, personal guidance, my wife Aimee has developed a Credit Solutions Program. She will go over your credit report, and by directly talking to the credit agencies she will put together an action plan on which accounts to pay off, which to keep and which to resolve. Then you make a plan to improve your credit, get qualified for a mortgage and find the perfect Realtor so you can buy your dream home.
This isn’t smoke and mirrors folks, Aimee has helped many people with this and last month two of them moved into their first homes because their credit finally made it possible!
I suggest you download the flier, call Aimeeand make a plan to own your home. This is also an attractive solution if you’re in a subprime mortgage and want to make sure your credit is in good shape before your ARM adjusts.
I don’t even want to tell you how much you’ll save if your score is below 619. You’ll have to go to the article yourself!
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on Sep 11th, 2007 at 11:17 pm
Hi.. thanx for such a good information you’ve given. I’m sure this will help many people like me who are not much aware about the credit score and mortgage. It was more good to know your wife Aimee thru her website. She has such a versatile character.
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on Sep 20th, 2007 at 3:35 pm
[...] am happy for this couple, because errors on your credit report can end up costing you big. A 30-40 point difference can be worth thousands of dollars in extra interest payments. Sometimes [...]
on Oct 7th, 2007 at 4:21 pm
[...] Step 2 (b): Manage Your Credit - First check for any errors in your report. If you find errors contact the creditor and ask them to fix it, they must respond to your request within 30 days (take good notes). Once you’ve reviewed errors you need to make sure you review my “Seven Ways to Destroy Your Credit” and do the exact opposite. Believe me when I say improving your credit can end up saving you thousands of dollars. [...]
on Oct 10th, 2007 at 1:54 pm
[...] only can bad credit cost you big bucks, it could even cost you that new job you want or the promotion you’ve been working so hard [...]
on Dec 20th, 2007 at 7:28 pm
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on Mar 5th, 2008 at 11:00 pm
Just need to know how the market is behaving since this mrtgage crisis has shown up. Do these scores really show the true picture?
on Mar 6th, 2008 at 10:10 am
Vivek,
Yes these scores are fairly accurate. They’ve served creditors very well.
on Apr 21st, 2008 at 9:27 am
[...] Forget The House, How Much is Your Credit Score Worth? [...]