A higher credit score could mean thousands of dollars in savings on a mortgage, according to a new study from LendingTree that compares very good credit scores to fair ones.
A fair credit score is considered in the range of 580 to 669, while a very good credit score ranges from 740 to 799.
The average borrower with a fair credit score will pay about $261,076 in total interest over the lifetime of their mortgage. On the other hand, a borrower with a very good score will pay $219,660—a $41,416 difference.
When LendingTree broke down the most common type of debts—credit cards, student loans, auto, and more—mortgages occupied the highest in interest paid by a borrower by far.