Keep in mind that these are loose estimates, so the APR you will actually qualify for will vary with each lender. That 4% difference saves you about $17 a month, and $240 over the course of a year. With the lower 20% rate, that would come out to about $83 after 30 days, and $6,097 annually.
Over one month, you'd owe about $100 in interest with a 24% rate. Now let's say you hold a $5,000 balance and interest compounds monthly. But bumping that score up 100 points to 730 would get you closer to 20%.
Monthly interest for a credit cardįor credit cards, having a credit score of 630 could qualify you for an APR around 24%, according to Investopedia data. Over the course of the entire loan, you'd save a total of about $98,000 in interest payments. However, with a credit score of 730, you would likely qualify for a lower rate, around 6.09%.įor the same $300,000 mortgage, your monthly payment would be reduced about $273 with the lower rate. You would likely qualify for an annual percentage rate of around 7.46% for a $300,000 30-year fixed mortgage, based on a Bankrate analysis from earlier this year. Cramer names biopharma companies to watch as industry mergers start to pile upĭepending on your outstanding debt, improving your credit score by 100 points can save you hundreds of dollars.
