90 points = $40k
What is a credit score?
A credit score is a three-digit number (300–850) that measures how reliably you repay debt. Lenders use it to set interest rates — higher scores get lower rates. FICO, the most common model, weighs five factors: payment history (35%), amounts owed (30%), length of history (15%), new credit (10%), and credit mix (10%). A 90-point score difference on a $300,000 mortgage costs over $40,000 in extra interest.
Level
Try calculatorKey takeaways
04 · ideas- Credit scores range from 300–850; 740+ gets best mortgage rates
- Payment history (35%) is the most important factor
- A 90-point score difference on a $300k mortgage costs $40,000+
- Checking your own score never hurts it (soft inquiry)
Illustrative chart
$200k · 7.5% · 30yr
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A credit score is a three-digit number (300–850) that tells lenders how likely you are to repay a loan. Think of it as a financial GPA.
The score ranges:- 800–850: Exceptional — best rates available
- 740–799: Very good — nearly best rates
- 670–739: Good — average rates
- 580–669: Fair — higher rates, harder to get loans
- Below 580: Poor — very high rates or denied
- Score 760+: ~6.5% rate → $1,896/month → $382,560 total
- Score 680: ~7.2% rate → $2,040/month → $434,400 total
- Difference: $51,840 over 30 years — from having a lower score
- Pay every bill on time, every month
- Keep credit card balances below 30% of your limit
- Don't open many new accounts at once
- Keep old accounts open (length matters)