Election Day Economics

FICO scores matter to consumers because they influence the interest rates and terms lenders offer for mortgages, auto loans, and credit cards. Higher scores help people get better loan terms, while lower scores can lead to higher costs, making credit scores essential for managing finances and affording housing.

At the recent Mortgage Bankers Association (MBA) event, mortgage bankers voiced concerns over rumored FICO score price hikes.

Currently set at $3.50 per score, these prices could rise to $5 or more in 2025, adding costs for lenders, who may pass these onto borrowers.

Credit agencies like Experian, Equifax, and TransUnion are expected to follow suit, further increasing fees. With credit report costs already triple what they were a few years ago, lenders have had to raise fees for borrowers, impacting home affordability.

For consumers, this means getting a mortgage or refinancing could cost more, especially in today’s tough housing market. Since credit scores directly impact loan costs, keeping a high FICO score is key to accessing affordable borrowing options as these price hikes take effect.

Friday’s October jobs report will be pivotal in guiding the Fed’s upcoming interest rate decisions, impacting mortgage rates that have recently surged.

If you’re curious or concerned about your credit in light of these changes, check out the financial fitness app S1FinFit. It’s a helpful tool for learning about and tracking your credit, making it easy to stay on top of your financial health and reach your goals.