Few consumers are aware of the importance of their credit score. It would come as a surprise to many that your car insurance rate, your interest rate on a car loan, and your ability to qualify for the best home loan rate, all are effected by your credit score.
Most folks would be even more surprised to find out that a late payment on a credit account can change your credit score by as much as 30 points. That could change your intereste rate on a 30 year mortgage by .5 percent. On a thirty year fixed mortage on $100,000.00 at 4.0 percent the monthly principal and interest (P & I) payment would be $477.00. If the same loan were written at 4.5% the P & I payment woud be $507.00. It is only $30.00 a month you say? Well, your right but let's take the long view. That difference is $360.00 every year. Over the 30 mortgage, that means you pay and additional $10,800!!! Just because of a late payment and it effect on your credit score.
Talk with your financial advisor about ways you can protect and be aware of your credit score. It could save you a sizable amount of money in the future. CC