interest rate: How Does a Low Credit Score Affect My Interest Rate? - 08/06/07 07:30 AM

Lenders estimate your ability to pay back money based on your credit score.  The risk factor they take on is built-in to your interest rate as a financing fee.  Therefore, a low credit score results in a higher interest rate, higher monthly fees, and a higher amount of interest being paid over the total life of the loan.
A borrower with a credit score of 620 would be questionable to an underwriter.  While the lender may agree to provide financing, the increased interest rate is factored into the monthly payment.  The following chart illustrates the difference in the amount of interest paid … (0 comments)

 

Gail Loane

Lafayette, IN

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Genesis Credit Corporation

Address: 1221 S Creasy Lane, Suite J, Lafayette, IN, 47905

Office: 765(446) 293-0224

Fax: (765) 448-6398



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