I think it is an absolute game changer for the money you spend. And I’m not joking, I think a year from now, you’re going to walk away like so many of my students and say, this is a game changer, it’s changed my life and it’s going to make me a lot of money. So without further ado, let’s do this. Having a poor credit score can significantly increase the cost of borrowing for American consumers. Conversely, improving one’s credit score to an excellent range can lead to substantial savings and open up additional financial opportunities. When you talk about credit, you’ve got to understand the ranges, right? Credit scores typically range from 300 to 850 and are categorized as follows.

Poor credit between 300 and 579. Fair credit is between 580 and 669. Good credit between 670 and 739. Then you’ve got the band where most Americans are, between good and very good. Very good is 740 to 799. And this is where I want you to be within the next six months, and I’m not joking. We can make this happen. Excellent credit between 800 and 850. Now, these ranges are usually used by, I’m sorry, usually they’re always used by lenders to assess the risk associated with lending to a borrower, right? Now, let’s talk about some costs, additional costs incurred due to you having poor credit scores.

And when I say poor, I’m talking about anything under very good, all right? And even very good, I have students that have had 750, 760 credit scores that now have over 800 and they are saving money and the world is, oh, they’re oyster because whenever they walk in and need money from a bank or a lending institution, they say, how much do you want and where do you want it? All right? So let’s talk about mortgage loans. A lower credit score can result in higher interest rates on mortgages. For example, excellent credit between 760 and 850.

An interest rate of approximately, I’m going to give you some parameters, right? And I went for some searches on the internet. So these are older numbers, but the ratios still work, okay? So back when rates were a lot lower, right? You could get on any given day when rates were around this much, with excellent credit, 2.813%, right? This would result in a monthly payment of 846 bucks, right? Interest paid over the term of the loan was $104,915, okay? Now, again, this is older calculation, but this is what I got off the internet.

Now, on that same day, if you had fair credit between 660 and 679, the interest rate would be 3.4%. That is quite significantly higher, right? That might lead to a monthly payment of $889, right? And total interest paid of $120,000. So just having, if you kept those loans and they’re the exact same house, same everything except for the loan was different, the rate because of your interest, because of your credit score, you’re paying an additional $15,000 over the term and a much higher monthly payment, right? Think about this.

If you had poor credit anywhere between 620 and 669, your interest rate would be at 4.4%. So now think about that. The difference between excellent credit at 2.8% on a mortgage and 4.4% is staggering, okay? This is a massive difference, right? The difference in the total interest paid between excellent and poor credit scores can be as much as $55,000 over the life of the loan. Now, let’s say you don’t want to buy a house, but you’re like, hey, I need a car. Well, let’s talk about auto loans, right? For instance, to give you an example, excellent credit, right? An interest rate of 6.3% on a $41,000 auto loan, or give or take a little bit more, could lead to annual payments totaling $9,700.

However, if you had poor credit, an interest rate would be 18.2% on the same loan, and that would result in annual payments totaling $12,700. That is a staggering difference, right? Over a five-year loan term, the individual with poor credit would pay an additional $15,120 compared to someone with excellent credit, all right? Now, let’s move on to credit cards, and credit cards is an incredible tool if you want the course down below. I’ll teach you how to use credit cards in a specific sequence to, it’s no joke, fool the credit agencies into going, oh my gosh, this person is incredible.

We’ve got to, it’s like that movie from Office Space. This is amazing. We’ve got to, we can’t fire this guy. We’ve got to hire him. This is like this in the credit score arena. Credit cards. Individuals with poor credit often face higher interest rates on credit cards, right? Leading to increased costs when carrying a balance. This can result in paying significantly more in interest charges over time. So what are the benefits, right, of higher scores? Well, enhancing your credit score from poor to excellent can yield substantial financial benefits. Lower interest rates, right? Improved credit scores qualify borrowers for lower interest rates on mortgages, auto loans, and credit cards, leading to significant savings over time.

Reduced insurance premiums. Many insurance companies offer lower premiums to individuals with higher credit scores because they’re like, hey, this person cares about their credit, so we probably think they’re going to care about their stuff and more than likely not run their car into a wall or a building. That’s really what was on my mind. But then you’ve got better opportunities in employment. Some employers actually consider credit history during hiring, so better credit score can enhance job prospects. You then have increased negotiating power. Higher credit scores provide leverage to negotiate better on loan terms and credit products.

The fact is, maintaining a good to excellent credit score, and I want you to be at excellent, is crucial for financial well-being. It not only reduces the cost of borrowing, but it also opens up various opportunities that can enhance your quality of life. Therefore, you should be encouraged to monitor your credit score regularly and take proactive steps to improve your credit health. If you want to learn about this, I’m going to put a link down to our credit score pro. It’s going to teach you everything about how credit is figured out, how it is monitored, how you can change it and go from zero to hero in 90 days.

I’m not joking. Between 90 and 120 days, we are seeing incredible results from our students. Alright, with that being said, have a great day and go crush it. [tr:trw].

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