WHY CREDIT?

piggy-banks

Credit reports and scores can affect:

Attending
school

Covering
daily expenses

Traveling
to work

Renting
an apartment

Buying
a phone plan

And much more!

Good credit can open many doors. Companies check credit reports and credit scores before lending to us, leasing to us, providing us products and services - and sometimes even before hiring us. Even if we get a credit card or mortgage, without good history and with no/low credit score, companies will charge us higher fees and interest rates.

With good credit history and credit scores, we get:

SELECTION

Access to a greater variety of products

Example: shopping around to compare auto loans

SAFETY

A cushion in case of an emergency

Example: covering costs of a car breakdown with a credit card

SAVINGS

Lower interest and fees = more savings

Example: putting aside money for a family road trip

How can credit make a difference?

On a $15,000 auto loan for 5 years

auto terms

On a $150,000 home loan with a fixed rate for 30 years

mortgage terms

*Figures sourced from the FICO Loan Savings Calculator. This tool can be used to look at variety of auto and home loans.

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Keep in mind that the total interest is on top of the original loan amount. The credit score range affects the interest rate, which determines how much total interest is paid over the loan term. As seen above, the qualifying score ranges and interest rates can vary for different kinds of loans.