Home Financing: A 30-year fixed with a loan principal amount of $360,000
If your score improves to 720-850, you could save an additional $318,329
If your score improves to 700-719, you could save an additional $308,047
If your score improves to 675-699, you could save an additional $263,094
If your score improves to 620-674, you could save an additional $163,422
A borrower who increases his or her credit score from 620 to 720+ can potentially save $884 per month on mortgage payments, $10,608 per year , and approximately $318,329 over the life of the 30-year loan. FICO Score APR Monthly Payment Total Payments Paid Above 760 5.800% $1,760 $633,600 620-719 6.020-7.120% $1,803-$2,019 $649,080-$726,840 Below 620 8.531-9.289% $2,511-$2,739 $903,960-$983,160
Amounts Owed Credit Cards Mortgage Loans Auto Loans HELOCs Installment Loans Length of History New Credit Soft Inquiries Hard Inquiries Types of Credit Used A Mortgage Loan An Auto Loan 2-3 Major Credit Cards
Payment History: 35% How do your borrowers pay their bills?
A recent 30-day late can cost 50+ points.
Paying a collection that is more than 2 years old can hurt a score.
Being past due on an account can cost 50+ points.
Derogatory accounts do NOT always fall off of a credit report automatically after 7 years. They must be disputed.
A divorce decree does NOT take precedence over the creditor agreement.
Inquiries can cost between 2 and 30 points, depending on the current score.
Pre-approved card offers are NOT really pre-approved.
BORROWERS NEED TO WORK ON OPTIMIZING THEIR CREDIT TODAY!
Step 1 - Order Credit Reports & Scores : The first step is for borrowers to get a complete picture of their current credit situation by ordering a copy of their credit reports and scores for all three national credit bureaus - TransUnion®, Equifax and Experian®.
Step 2 - Verify the Data Being Reported : It is the consumer's responsibility to verify the accuracy of the data being reported.
Step 3- Dispute Any Inaccurate Information : Have borrowers contact their creditors and send letters of dispute to the credit bureaus to have errors on their report corrected. These must be sent via CERTIFIED mail.