What is a credit score worth to you? What does it matter whether you have a 720 score or a 695? It’s only 25 points? Well according to MyFICO, a division of Fair Issac, this 25 point difference could cost you almost $31,000 in extra interest payments over the life of the loan. So, in other words, in this situation each point is worth $1,200.
According to a Bankrate.com article:
The consumer with a FICO score between 620 and 674 might get a 7.734 percent rate … That’s $55,947 more than the middle-score borrower and $86,949 more than the borrower with excellent credit.
So, what is a credit score worth to you? I know its worth a lot to the lender.
Readers of this blog know I’m not a big fan of using credit improvement agencies. I know certain people can benefit, but for most people it’s not going to be that difficult to reign in on other credit.
Last month, I wrote an article over at Christoph Schweiger’s blog on the Seven Easy Steps To Completly Destory Your Credit . If you do the exact reverse of what I say you’ll be on the right track.
However, for those who want some customized, personal guidance, my wife Aimee has developed a Credit Solutions Program. She will go over your credit report, and by directly talking to the credit agencies she will put together an action plan on which accounts to pay off, which to keep and which to resolve. Then you make a plan to improve your credit, get qualified for a mortgage and find the perfect Realtor so you can buy your dream home.
This isn’t smoke and mirrors folks, Aimee has helped many people with this and last month two of them moved into their first homes because their credit finally made it possible!
I suggest you download the flier, call Aimeeand make a plan to own your home. This is also an attractive solution if you’re in a subprime mortgage and want to make sure your credit is in good shape before your ARM adjusts.
I don’t even want to tell you how much you’ll save if your score is below 619. You’ll have to go to the article yourself!