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While your credit score may reside in the hundreds, the amount of money you will save or lose with that score, will vary by thousands or perhaps even tens of thousands of dollars.
A credit score is often looked at as the gateway number that will decide whether or not you’ll be approved for a credit card or a loan. That’s true to an extent, but your credit score also plays a major role in your interest rate once you’ve been approved for the loan. Just a couple percentage points can mean the difference between saving or losing hundreds of dollars a year when you pay on your credit card.
Now let’s apply that same principal to a car loan or a home loan. A few percentage points on a home loan can mean tens of thousands of dollars that will either flow in or out of your bank account. So if you’re looking to save money in the short term and the long term, fixing your credit score is a great place to start.