Your Credit Scores
Credit scores are vital to your financial
health
A
credit score is a number that helps lenders
and others predict how likely you are to
make your credit payments on time.
Each score is based on the information in
your credit report.
Why do your scores matter?
Credit scores affect whether you can get
credit and what you pay for credit cards,
auto loans, mortgages and other kinds of
credit. For most kinds of credit
scores, higher scores mean you are more
likely to be approved and pay a lower
interest rate on new credit.
Want to rent an apartment? Without
good scores, your apartment application may
be turned down by the landlord. Your
scores also may determine how big a deposit
you will have to pay for telephone,
electricity or natural gas service.
Lenders look at your scores all the time.
They look at your scores when deciding, for
example, whether to change your interest
rate or credit limit on a credit card, or
whether to send you an offer through the
mail. Having good credit scores makes
your financial dealings a lot easier and can
save you money in lower interest rates.
That's why they are a vital part of your
financial health.
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Consider a couple who is looking to
buy their first house. |
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Let's
say they want a 30-year mortgage
loan and their FICO© credit scores
are 720. They could
qualify for a mortgage with a low
5.5 percent interest rate.*
But if their scores are 580,
they probably would pay 8.5 percent*
or more - that's at least 3 full
percentage points more in interest.
On a $100,000 mortgage loan, that 3
point difference will cost them
$2,400 dollars a year, adding up
to $72,000 dollars more over the
loan's 30-year lifetime.
Your credit scores do matter.
*Interest rates are subject to
change.
These rates were offered by lenders
in 2005. |
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Click this button to view
and print a FREE
complimentary copy of "Your Credit
Scores"
To get a printed copy contact the
Federal Citizen Information Center
at 1-888-878-3256. PUEBLO (1-888-878-3256)
or by writing to the following
address: Credit Scores,
Pueblo, CO 81009.
This is a publication that has
been prepared by the Consumer
Federation of America and Fair Isaac
Corporation, and was reviewed by the
Federal Citizen Information Center.
These materials may be reproduced
for educational purposes only. |
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This calculator will help you to determine
how much house you can afford and/or qualify
for.
