Why Your Credit Score is So Important

The credit scoring model seeks to quantify the likelihood of a consumer to pay off debt without being more than 90 days late at any time in the future.  Credit scores can range between a low score of 350 and a high score of 850.

The higher the score, the better it is for the consumerHow-do-you-compare-credit-score

  • A high credit score translates into a low interest rate
  • This can save literally thousands of dollars in financing fees over the life of the loan
  • Only one out of 1,300 people in the United States have a credit score above 800
    • These are people with a stellar credit rating that get the best interest rates

On the other hand, for the lower credit score

  • One out of every eight prospective home buyers is faced with the possibility that they may not qualify for the home loans they want
    • Due to a score falling between 500 and 600