One very good reason to get a copy of your credit report and begin working to get your credit score as high as possible is the difference in interest rates you’ll pay if you need to buy a new car.Research shows that a borrower with a score under 600 will pay over 18% for a car loan - while a borrower with a score over 720 will pay only 6 5/8%. As you might expect, the difference in the payments is staggering.Rates for borrowers with scores between those ends pay less interest as their credit scores climb, but the rate doesn’t drop below 10% until you reach a FICO score of 660.To add insult to injury, insurance companies also charge more if your credit score is low. While there doesn’t seem to be a correlation between credit scores and driving habits, there is a correlation with regard to paying the premiums regularly and on time. Insurance companies like to have their money, so they charge more at the outset, knowing they might not get the full premium.Rather than use the FICO score in its pure form, insurance companies use a variation called an “insurance score.” This is recently coming under […]

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