Your FICO score makes a big difference in how lenders determine what interest rate to charge you. Consider the situation

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Your Fico Score Makes A Big Difference In How Lenders Determine What Interest Rate To Charge You Consider The Situation 1 (17.01 KiB) Viewed 34 times

Your FICO score makes a big difference in how lenders determine what interest rate to charge you. Consider the situation faced by Edward and Jorge. Edward has a fairly poor FICO score of 660 and, as a result, pays 19.0% APR on the unpaid balance of his credit card. Jorge has a FICO score of 740 and pays only 7.1% APR on the unpaid balance of his credit card. If both persons carry an average balance of $3,500 on their credit cards for three years, how much more money will Edward repay compared with what Jorge owes (moral: you want a high FICO score)? Assume monthly compounding of interest. Edward will repay $ more. (Round to the nearest dollar.) (…)