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So as you can see, as little as a 30-point difference in your credit score could cost you more than $20,000 over the course of your lifetime. And it gets worse if you were to have poor credit as a like amount of debt would cost you nearly $50,000 more than if you had good credit:
Do you know your credit score?
Given the fact that your credit score plays such an important part in how much your debt will cost you over the course of your lifetime, it's important that you know what it is. There is only one place to get your true FICO score, which is on the website www.myfico.com. You can also get a version of your FICO score from either of the three credit reporting bureaus (Experian, Equifax and TransUnion) or from CreditKarma.com or CreditSesame.com. If you have a Discover Card you're probably getting your credit score every month as part of your statement. The important thing is to get your credit score. If you learn you have a poor or fair score you have your work cut out for you. While there's not much you can do about your credit history (how you handled credit in the past) you could at least work on your credit utilization, which is the amount of credit you've used vs. your total credit limit. As an example of this if you have a total credit limit of $10,000 and have used $5000 of it, your credit utilization would be 50%, and this would negatively affect your credit score. You could improve your credit utilization by either paying down your debts or getting an increase in your credit limit. While neither of these would be easy to do, it could be worth the effort as it should lead to a better credit score and this would help lower your lifetime cost of debt.