Chapter 12 Conclusion
The markets for financing homes and cars are large enough that there’s
room for just about anyone. But your credit score will determine how much
cash you need to put down to buy a home or car…and how much interest
you pay for a loan.
These numbers effectively push people with poor credit out of the marketplace.
And they give real advantages to people with good credit.
A person with a FICO score of 750 can pay $500 less a month for a $300,000
mortgage than someone with a score of 570 pays. And those savings are a sort
of perpetual advantage that helps the higher scores stay higher.
But remember this: While you’re making payments on a home or car, most
people will consider you the owner. You’re not. The lender owns your
home or your car until you’ve paid it off in full. Then you receive
the clear title and really own it.
Next: Chapter
13 - Keeping Good Credit |
