Credit is everywhere: interest, mortgage rates, security deposits, loan payments, leases. The first step to a good credit score? Seeing just how expensive bad credit is.
Auto loans vary dramatically with your credit score – from 4% to as high as 20%.
The minimum credit score to buy a house is 620. Interest rates on mortgages can vary up to 2%, depending on your credit score. This doesn’t seem like a lot – but it seriously adds up over the years.
Good credit qualifies you for cards with the best rewards – travel points, cash back, sign-up bonuses. Many of these recommend a minimum of 690 to apply.
With a bad credit score you’d probably be limited to secured credit cards, which require a costly deposit.