Mind on My Money: Black Personal Finance 101
By The Numbers
Your 3 Digit FICO number is the basis not only for if you get approved for many loans. It also determines how much you are going to pay when a lender is willing to extend you credit.
The interest rate that your score qualifies you for will determine how much money you will keep in your pocket at the end of your loan term. On a 30 year mortgage loan for $300,000*
The math speaks for itself. A hundred point difference between the top tier (760) and the middle tier(660) will save and individual over $38,880 dollars over the life of the loan. On a 36 month car loan for $20,000*
On a car loan, an applicant with a score of 720 will save $2,988 over the consumer with a score of 620.
Good credit will actually keep money in your pocket. And over the course of a lifetime, the difference between the good interest rates that high scores provide you, and the not so great rates extended to consumers with lower scores can literally save you tens if not hundreds of thousands of dollars. |
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