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.