If you’ve been hearing about free credit report and free credit score offers, you’re probably wondering what the big deal is. Unless you don’t have a problem with paying high interest rates and fees to lenders, you should consider getting some background information about your credit. Consider this, the range of your credit score can affect how much you will pay for your monthly mortgage payment, for example:
If you have a good credit score:
Mortgage Loan Amount: $250,000
Interest Rate: 6.75%
30 Yr Fixed Rate Payment: $1,621
Total After Finance Charges: $333,734
If you have a mediocre credit score:
Mortgage Loan Amount: $ 250,000
Interest Rate: 8.75% (2% difference)
30 Yr Fixed Rate Payment: $1,966 ($345 monthly difference)
Total After Finance Charges: $458,032 (That’s a $124,298 difference over the course of 30 years!)
The difference is truly astounding. The information on your credit report is a powerful force in your finances. Having a good grasp on what information appears on your credit report could save you hundreds of thousands of dollars in finance charges over the years in a long term loan. Explore your options, check your credit report, for free.
Related posts:
- What are Adjustable Rate Mortgages?
- Mortgage Deals—Too Good to be True?
- Credit Scoring Methodology
- What Does A Credit Score Mean?
- Checking your Credit Score
FAQ: How do I check my Free Credit Report?
Your credit report is the basis for your financial standing. No matter how slick or smart you may be, no bank will touch anyone with a low credit score. It's their money, why would they want to take a bigger risk than they need to?
If you don't know where your credit report score is at, now's the time to take a peek. Don't get surprised with a low credit score when you go in to review your report with a potential lender or even an employer, find out for yourself within minutes.
