What’s a Good Credit Score?

Creditors establish their own guidelines and break points for doling out credit. But here’s what credit scores can mean for your personal finances:

Someone with a credit score of 550 might be charged an interest rate that’s three to four percentage points higher than someone who scores over 750. That could translate into paying several thousand more dollars in interest for a $20,000 car loan or over a hundred thousand extra bucks in interest over the life of a 30-year $200,000 mortgage! That’s money you could invest for your retirement instead.