Here's How Much a Low Credit Score Can Cost You Every Single Month
Your credit score is the most important number in your financial life. FICO cites 670 as the start of the “good” range, but the best loans, rates, premiums, annual percentage rates (APRs) and, in some cases, jobs, are reserved for those with very good scores of 740 or higher and elite scores of 800 and above.
Those on the other end of the credit spectrum pay more for nearly every dollar they borrow because their financial profile presents a greater risk to lenders — and the proof is in their monthly payments.
MoneyLion used a variety of sources to estimate that poor-credit borrowers pay $599 more for the same key services than borrowers with better scores every single month.
Here’s how it breaks down.
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Credit Cards: $34
According to a February TransUnion report, the average individual credit card debt in 2026 is $6,715. Separately, the Consumer Financial Protection Bureau reports that super-prime borrowers — those with credit scores of 720 and above — pay an average credit card APR of 23.1%, compared to 29% for subprime borrowers with scores between 580 and 619.
A CNBC analysis found that a poor-credit borrower making $250 monthly payments on the average $6,715 balance pays $408 more in extra interest per year, or $34 more per month, than a highly qualified borrower.
Mortgage: $121
According to Consumer Affairs, borrowers with scores of 760 or higher pay an average mortgage rate of 6.56%, compared to 7.34% for those with scores between 620 and 639. Based on a $300,000 loan with a 30-year fixed-rate mortgage, the good-credit homeowner has a $1,909 monthly payment, compared to $2,030 for the low-credit borrower, for a difference of $121 per month.
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Homeowners Insurance: $166
A recent Consumer Federation of America study found that the typical homeowner with a low credit score pays $1,996 more per year than the same borrower with a high credit score — roughly double (99% more). The so-called premium penalty costs the average poor-credit homeowner approximately $166 per month.
Auto Loan: $160
According to the Q4 2025 Experian State of the Automotive Finance Market report, the average super-prime used-car buyer receives a 7.7% APR, while subprime borrowers pay 19.43%.
Experian notes that the average used car loan is for $26,468. Presuming a 60-month term, the monthly payment difference is $533 for a high-score borrower and $693 for a lower-score borrower, a $160 gap.
Car Insurance: $118
According to insurance comparison platform The Zebra, your car insurance premium can jump by 17% if your credit drops even a single level, and those with poor credit pay double the rate of strong-credit drivers. The average motorist on the low end of the credit spectrum pays $2,729 per year ($227 per month), compared with $1,303 per year ($109 per month) for those with the best scores. That’s a difference of $118.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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