The difference between the highest and lowest interest rate range in the table above is $ 190 per month (or $ 2,280 per year) in mortgage payments – and over $ 68,000 in interest. totals paid! Having a high credit score can save you tens of thousands of dollars – and maybe even get you on a date.
Tip # 2: Improve Your Credit Score
If your credit score is high, congratulations! Your main job related to credit score now is simply to keep it high. If your score isn’t what you want it to be, rest assured – there are ways to increase it.
First of all, however, it helps to understand exactly what is going on in the score. Here’s how FICO builds its scores:
- 35%: payment history
- 30%: how much you owe
- 15%: Length of credit history
- 10%: New credit
- 10%: other factors such as your credit mix
Obviously, the most important factor is paying those bills on time. This makes sense, since a credit score is all about your creditworthiness – how risky it is to lend you money. If you have a bad bill paying record, you won’t find lenders offering you the best interest rates. They will see that you have a decent chance of defaulting on your loan, and they will have to compensate your risk.