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The high cost of a low credit score

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Have you checked your credit score lately?

Oct. 10, 2018

I write a lot about the importance of a good credit score when you apply for a loan.

The personal finance website WalletHub recently ran the numbers on a 5-year $20,000 new car loan with a fixed interest rate.

They compared someone with excellent credit and someone with fair credit.

Over the life of the loan, the buyer with fair credit will spend about five times more in interest – or $6,400 more – than someone with excellent credit.

As the Federal Reserve continues to raise interest rates, auto loans continue getting more expensive. Right now, a buyer with excellent credit can find loans starting at 4.7 percent, according to Bankrate.com.

More Info: Q3 2018 Auto Financing Report

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