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    Credit Score Affects Monthly Payments

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    Geo Beats

    by Geo Beats

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    People with less than excellent credit scores are paying for it by up to 4 thousand dollars a year according to one report.

    How important is having a good credit score?

    People with less than excellent credit scores are paying for it by up to 4 thousand dollars a year according to one report.

    Bills for auto loans, auto insurance, credit cards and mortgages all increase significantly the lower someone’s credit score is.

    Monthly payments are determined by the person’s credit score and can be more expensive if the person’s score is lower.

    Car loans and vehicle insurance rates vary depending on several factors, but having bad credit is a sure fire way to have high monthly payments for automobile bills.

    For mortgages, being approved depends largely on the person’s credit score when applying, but other considerations also come into play including income, debt ratios, and how big the down payment is.

    According to Joe Kelly, President of Arcloan.com: “When it comes to qualifying there is no 'rounding up.’ A score of 679 is not treated as 680, and a score of 619 versus 620 could mean the difference of being approved for a mortgage.”

    And for credit card payments, interest rates are based on how high or low someone’s credit score is.