How A Good Credit Score Can Save You Money

credit score

By Bethy Hardeman for Credit Karma

You’ve heard it before: You should improve your credit. But do you know just why you should focus on your credit health? It’s not just because you can qualify for credit cards with great rewards — though that’s a nice perk. A great credit score can actually save you some big bucks on longer-term loans.

Good Credit Helps You Save on Your Mortgage

One of the most well-known ways that your credit score saves you money is by getting you low interest rates on loans. While the rate difference may be only a few percentage points, the overall cost difference can be huge.

Let’s take a few examples, based on the rates FICO publishes in

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2 Responses to How A Good Credit Score Can Save You Money

  1. david says:

    I think most people know that a poor credit rating will cause you to pay mor in interest although I don’t think most realize how much more that will be over the term of the loan. I think the more important factor is that bad credit can keep you from getting a job.

  2. Thanks for commenting, David! Actually, it’s pretty rare that bad credit will keep you from getting a job. Most jobs that use credit reports (none use scores) to help in the decision have fiduciary responsibilities. Plus, most companies will let you explain blunders on your credit.

    That’s why I think the money-saving factor of good credit is the most important.

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