Many people view a credit score as a simple grade rather than an invoice. On a major purchase like a home, that score directly determines your price.
Consider two buyers purchasing the same three hundred thousand dollar house with a thirty year fixed mortgage. The buyer in the 620 tier receives a 7.46 percent APR, resulting in a monthly payment of $2,089.
The buyer in the 720 tier gets a 6.91 percent APR, paying $1,978 monthly. That one hundred point score gap creates a difference of $111 every month.
Over thirty years, that small monthly gap adds up to more than forty thousand dollars in extra interest. Improving your score before applying is one of the highest return tasks you can complete.
What is the most a credit score has ever cost you?
