Over your lifetime you’re going to need things you can only buy on credit.
Big things. A house. A car. A dream vacation, or college tuition.
Most people have to finance these things. And a lackluster score will make them more expensive, because you’ll pay more in interest.
A survey from LendingTree shines a light on exactly how much a lower credit score can cost you over a lifetime.
The site analyzed loan requests and average loan balances for an apples-to-apples comparison on what loans cost for people with different scores: fair (580 to 669) and very good (740 to 799). LendingTree’s data measures the costs of five types of loans: mortgage, student, auto, personal and credit card.
Two stark price differences emerged from the data. People taking out an auto loan with a fair credit score can expect to pay 311 percent more interest on the same loan as someone with very good credit. Personal loan borrowers can pay 271 percent more in interest.