That 3 Digit Score that determines the Quality of Your Life

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The table that you see below shows the interest rate that corresponds  to various FICO credit scores. A FICO score between 760-850 will get you a 3.16% interest rate, 700-759 a 3.38% interest rate, and if your score is in the low-end range of 620-639 your 30 mortgage interest rate will be a whopping 4.75%. In simpler terms, if your credit score sucks then your monthly payments are close to 300 dollars a month more than folks with exceptional credit. If your FICO score is below 600, it is unlikely any lender will take a chance on you.

Your 3 digit credit score has a much wider influence on the quality of your life than many know. A low credit score can keep you from landing that job you want as potential employers can check your credit score. Insurance companies may not issue you a policy if your credit score is in the toilet OR they may with your punishment being very high premiums!

The factor that will hurt or lower your credit score the most is late payments. Late payments negatively affect 35% of your credit score. Excessively high balances too close to your credit card limit account for 30% of your credit score calculation. Recently opened credit cards can drive down your credit score a little. The credit bureaus like old credit accounts more than new ones. We have a credit card that is 9 months old and was listed as a factor that hurt our credit score at TransUnion.

In summary, your credit score controls where and how well you live and can negatively impact future  employment. Needless to say identity theft will drive your credit score down which is why you need to monitor your score by either freezing or placing fraud alerts on your credit history. It is complicated and depressing, but the upfront time you spend preventing your identity from being compromised can save much time and heartache.

Finally, Experian has been the most difficult of the credit bureaus for us to deal with. They make it almost impossible for you to unfreeze your credit history. You wait forever to get an Experian agent in Allen,TX who can not help you! We recently bought a brand new vehicle. The first lender Toyota hooked us up with required a pull of our credit score and history from Experian. We told finance manager to find another bank or lender that did not use Experian. Finance Manager resisted until we told him we would take our business elsewhere. He found us a bank that used TransUnion or Equifax instead. So the lender that required Experian lost a $24,000 loan! Revenge against the credit BULLY Experian so very sweet.

Home Mortgage Interest Rate that your FICO Credit Score will get you
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5 comments on “That 3 Digit Score that determines the Quality of Your LifeAdd yours →

  1. I noticed on your table of interest rates versus FICO credit score that 760 seemed to be the big break point. FICO scores of 746 747 748 749 750 751 752 753 754 755 756 757 758 759 are all good BUT will not get you the very lowest mortgage interest rates on that new home you want.
    It appears that once you are over 760, you can lock in on the best mortgage rates out there. So 761 762 763 etc. are no worse than 812 813 817 820 all the way to 830-850.
    It does not seem fair that 760 would get you the same rate as 850.
    BTW , PrimeSource Mortgage is NOT for borrowers with good credit scores. They tend to prey on people with not so good credit histories or credit scores. We had a great credit history and PrimeSource could only offer us 4.2%. We went to a bank and got 3.4%

  2. Kimberly Palmer points out credit scores can stay intertwined long after a marriage ends. If you are still registered as a co-owner of a credit card that is also used by your ex-spouse, you are considered responsible for that debt, regardless of the state of your marriage. (In some states, all accounts opened during marriage are considered joint, regardless of whose name is on them.) After divorce credit problems, which are common, usually can be avoided by closing joint accounts.
    Hal Bundrick a certified financial planner has much more to add to her brief description of the relationship between your credit score and your ex husband.

    1. Roswell,NM lawyer Tom Dunlap wrote long column in RDR denouncing the prospects of “late in life” marriage succeeding. He cited the commingling of finances, kids from different marriages as a couple of potential causes for the dissolution of matrimonial bliss.

      Tom specializes in probate law which often involves family members aggressively fighting over the estate of the decedent. I bet he has seen a higher incidence of this type of nuptial nastiness with “late in life” unions contrasted with the impetuous straight out of high school marriages.

      I would say this counselor experientially knows what he is talking about. Also much thanks to him for heading The JOY Senior services entity which cleverly stands for Just Older Youth!

      1. Speaking of “late in life”, you must read the work of Japanese writer Debito Arudou. He penned an excellent set of ideas on how to age gracefully which is easy for most Asians since the accurate stereotype of Occidentals looking much younger than their age is especially true for this handsome guy. Oddly he did not mention the age reducing youth inducing effects of chia seeds

  3. Do NOT fall for the credit Karma ruse being advertised on TV. The current credit Karma commercial declares you can “take care” of your various credit scores which is an absolute lie. You have to input your credit card information and then they constantly hassle you to add costly financial services including credit card offers!!

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