How A Good Credit Score Can Help You

A Good Credit Score Can Save Me How Much Money? Mortgages Figures reflect national average rates for $165,000, 30-year fixed mortgage. Monthly payment Savings earned if score was high* Credit score Interest rate 760-850 6.274% $1,019 700-759 6.496% $1,042 $8,627 660-699 6.780% $1,073 $19,788 What to expect when you have $1,164 $52,336 620-659 7.590% a good credit score? 580-619 8.905% $1,316 $107,234 500-579 9.899% $1,436 $150,192 *The amount one could save over the life of the loan if credit score was 760 or higher. Job offers Increasingly, potential employers pull credit reports and scores as another way to assess job candidates, 35% - Payment history Home equity loans Have you paid your bills on time? Any late payments will hurt you in this category. Figures reflect national average rates for $30,000, 15-year home equity loan. Lower interest rates This goes for home loans, car loans and credit cards. 30% - Card utilization Insurance Home and auto insurers may look at credit scores before deciding if coverage will even be offered, and then at what premium. Savings earned if score was high* Credit score Interest rate Monthly payment How much of your credit limit you've used. 740-850 8.429% $295 720-739 8.792% $301 $953 5 Parts Utility service If you have good credit, utilities like gas, electric, cable and phone companies may waive hefty deposits and offer better plans. 700-719 9.292% $310 $2,562 670-699 10.067% $324 $2,100 640-669 11.567% $352 $10,161 of your Credit Score 620-639 12.817% $376 $14,523 *The amount one could save over the life of the loan if credit score was 740 or higher. USA & Canada - Differences in credit score system 15% - Length of credit history Auto loans The system of credit reports and scores in Canada is very similar to that in the United States, with two of the same reporting agencies active in both countries: Equifax and TransUnion. This is usually the one that hurts young people, just because they don't have an extensive history. Figures reflect national average rates for $22,000, 36-month auto loan. There are, however, some key differences. Savings earned if score was high* Credit score Interest rate Monthly payment 10% - Types of credit used 720-850 7.131% $681 USA Canada The more diversified you are the better you are. 690-719 7.974% $689 $307 $704 $847 10% - Recent credit pulls 660-689 9.444% Number of free copies of consumer's credit report $1,414 $2,705 One free copy 620-659 $720 No limit* 10.967% Every time you apply for a loan, the lender must do a credit pull which goes on your credit report. Soft inquiries don't affect score in the USA. 590-619 14.360% $756 500-589 14.896% $762 $2,912 Credit pulls effect consumer's credit score YES NO *The amount one could save over the life of the loan if credit score was 720 or higher. *As long as the request is made in writing and the consumer asks for a printed copy to be delivered by mail. Sources: Foreigner's Finances, Bankrate, Money Saving Expert 23