Your Credit Scores Could Cost You Millions Over Your Lifetime

As you may know, your Credit Score is a major determining factor in the approval process on just about every loan these days. When a mortgage company looks at your risk for determining whether they can lend you money, the rate is what could cost you over the term of the note. The interest rate is determined by your Credit Score in most cases. The difference between 6.0% and 7.0% on a $150,000 dollar home is as follows:

Sales Price: $150,000

Term: 30 Yrs

Interest rate: 6.0

Finance Charge: $196,254 is what you would pay in interest over 30yrs with just minimum payment.

Sales Price: $150,000

Term: 30 yrs

Interest rate: 7.5

Finance Charge: $250,077 is what you would pay in interest over 30 yrs with just minimum payment.

Wow, that is over $53,000 dollars more in interest charges for a higher interest rate. Typically a person with lower Credit Scores will get the higher interest rate ranging between 1 point to 2 points high er due to there risk. This is one example of how lower Credit Scores could cost you millions over your lift time. Just calculate all the different loans you have and at what interest rate you currently pay. You can begin to see how this could greatly affect your pocket book. The best way to prevent this unnecessary spending is to manage your Credit Report and Credit Scores.

I have seen this problem countless times when families are applying for a mortgage with me. When investors decide to loan you money, your Credit Score will be a major factor in what interest rate you get. Make sure you stay on top of your Credit, a consumer Credit Report will not hurt your Credit Score what so ever. Make sure you go to http://www.my720fico.com to get a current copy of your Credit Report and Credit Scores. Dont get stuck in the trap of paying higher interest rates due to low Credit Scores.

http://www.my720fico.com is the leading authority on the web when it comes to you personal credit. This website was created by a lender, who kows what creditors are looking for when it comes to your Credit risk. My name is Mike Clover and you can got to http://www.my720fico.com to obtain a copy of your Credit Report with Scores, and you may ask me questions that I will answer on my BLOG.

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