How important is my FICO score?

Your FICO score really makes a big difference when applying for a mortgage. The reason is that mortgages are carried out over long periods of time (30 years for example) and that is where even a 1% or 2% difference in lending rates can add up to 10s of thousands of dollars. We are easily talking about a cost difference of $30,000 to $70,000 and more over the life of that loan. It's not just about your mortgage. Your FICO score plays a role in any car loan, or the interest rate on your credit card, or whether you deserve a boost in your credit card limit. It's also used by insurance companies in setting premiums and landlords deciding if they want to rent to you. Even some employers check your credit record during the hiring process.

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