Understanding Credit Scores By Jason Alderman If you've tried to
take out a loan or open a new credit account recently, you know
that the days of easy credit are long gone. Lenders, insurers
and landlords are more diligently scrutinizing your credit
history to see if you're a worthwhile risk. A low credit score
can cost a small fortune over the course of a lifetime. What
often happens to people with poor, or even fair, credit scores
is: - It's harder to qualify for a mortgage, you'll need a
bigger down payment and you'll pay a higher interest rate, which
adds up over time. Someone with poor credit might pay an extra
$100,000 in interest over the life of a typical 30-year,
$300,000 mortgage. - Similarly, someone with a poor score might
pay an additional $10,500 in interest on a 60-month, $25,000
auto loan. - Credit card interest rates can be 10 or more
percentage points higher and credit limits are typically much
smaller. - Although credit scores aren't factored into federal
student loan interest rates, they a