Don’t believe us? Let’s look at the numbers. If your credit score is between 780 and the perfect score of 850 you will be paying anywhere between 65 to 85% less in interest than someone with a challenging credit score below 600. Someone who has a near-perfect credit score will pay on average, $1,000 less per month on a $250K mortgage. That’s a savings of $360,000 of interest on a 30-year mortgage. If you were renting a 250K home or rental property to tenants, that would be an extra $1,000 a month in profit in your pocket!
Now, let’s look at what you spend on transportation. Let’s say you buy a new car every 5-7 years over the same time period as a 30-year mortgage. We’ll also estimate that your average car price is $25,000 for every new car you purchase. With 3.88% interest, you’ll save almost $25,000 in interest over the same time as a mortgage. This is compared to paying 9.6% with a lower credit score.
What’s shocking is the fact you don’t lose as much money with buying a car than with a home or investment property but here is where you are really getting raked over. The amount you’ll save in credit card interest is just as shocking as the interest you’ll save in a low-interest rate mortgage. Over a 30 year period, a family could save up to $240,000 in interest payments. That’s a grand total of $625,000 when you combine the savings in one mortgage, credit cards and vehicles just in interest alone! If you saved that amount of money in a horrible low yielding interest investment account of just 3% you would have over $1.2 Million saved up for retirement or investments.
According to Glassdoor.com, the average bachelor’s degree raises a person’s salary by $19,000 per year average over a lifetime compared to a high school or Associate’s degree in 2020 when adjusted for inflation. That average equal to $570,000 in extra income in 30 years. This doesn’t include the cost of education to receive a bachelor’s degree or the lost amount of investment income.
Let us help you build a perfect score and save you thousands per year in interest.