Return on Credit

This may shock the socks right off you, but your credit score could cost you a half-million dollars by the time you reach retirement.

Why?

Simple: Lenders are wary of you, so they charge you more interest.

Let’s run through an example to show you what we mean:

Meet Jack and Jill. Jack’s credit score is 780. Jill’s is 580. Each of them buys a $250,000 house when they’re 35-years old.

Jack is charged 4.5% interest.

Jill is charged 6% interest.

Based on principal and interest alone:

  • Jack’s 4.5% payment = $1,266.71
  • Jill’s 6% payment = $1,498.88

If you take the difference, Jill pays $232.17 more than Jack each month. Over the course of 30-years, she’ll pay $83,581.20 more.

Not only is Jill paying more than Jack, but guess what Jack did with his $83,581.20? He invested it at 6%. Now he can pay off his house and have close to half a million dollars in the bank for retirement.

This is called return on credit, and it’s a powerful, life-changing concept we want to help you understand and take advantage of!

Ready to take the first step to improving your credit and buying a home? Download our free book here.

 

How Can YMCC Help You?

As Your Mortgage Credit Coach, we want to cheer you on, and train you to avoid heartbreak during the home buying process.

Our goal is to teach you:

Your Mortgage Credit Coach Icon

  • What the heck a credit score is.
  • How your age affects your credit.
  • Why bad credit will cost you more—a lot more—by the time you reach retirement.
  • How to manage your credit cards.
  • How the mortgage approval process works and how to get approved despite poor credit.
  • The myths and truths about credit.
  • How to deal with pesky collectors.
  • How to avoid common credit traps.
    • How to keep your credit and enjoy life more!

    Essentially, we want to show you how to live the life you’ve always dreamed of.

    Ready to take the first step to improving your credit and buying a home? Download our free book here.