Lower FICO, higher costs

Sheesh, you could use that $50K to bribe the credit bureaus!You know that the worse your credit, the more you’re gonna pay for a loan. But how much more? The Washington Post decided to find out. It got rates for borrowers with different credit scores, then did the math, and put it in a fancy little interactive chart.

What’d the paper find?

One example: Buying a $200,000 home with 5% down, someone with a high FICO score (850) will pay only 4.271% interest — that’s a total cost of $331,850.

But the guy with the low FICO — say, 620 or 630? He’ll pay more than 5.8% interest and $383,521. That’s 50 grand more.

Check your credit score (free once a year) at the Federal Trade Commission’s approved site: annualcreditreport.com. That’s the only place to send your clients — tell them to avoid any company that advertises on late-night television.

About Andrew Kantor

Andrew is VAR's editor and information manager, and -- lessee now -- a former reporter for the Roanoke Times, former technology columnist for USA Today, and a former magazine editor for a bunch of places. He hails from New York with stops in Connecticut, New Jersey, Cincinnati, Columbus, and Roanoke.
This entry was posted in The Buzz. Bookmark the permalink.

3 Responses to Lower FICO, higher costs

  1. It’s my experience that you can’t get a score through annualcreditreport.com, just the reports. Am I mistaken, or has that changed?

  2. You might be right — it’s been a while since I used it. I wanted to be sure to point people to a credit-reporting site that was trustworthy. Too many fake and scam sites around.

  3. Keith Costley says:

    Once you have answered all the pertinent questions from annualcreditreport.com, you will be taken to a webpage that has the big three credit reporting agencies (Experian, TransUnion, Equifax) listed. Once you click on their name, which is a link to their site, and answered their questions, you are offered a chance to get your credit score for a small fee, anywhere from $7 up to $10, along with your free credit report. You can elect to accept this offer and pay the small fee or decline it and proceed to getting your free report. So in essence you can get your credit score from annualcreditreport.com however it is going to cost you a small fee.

Leave a Reply

Your email address will not be published. Required fields are marked *