Mathematically, the difference between 620 and 760 is only 140, but in real life it can mean a difference of thousands of dollars per year to you.
140 doesn't sound like much. If you were shopping for a new TV, and you liked two of them, priced $140 apart, you might not worry too much about the price difference.
However, in the world of your credit score, the difference between those two is huge.
A 620 credit score means you can get a home loan, from a very few lenders, with bad terms, at a rate of around 7.5%, if you're lucky.
A 760 credit score means you can get a home loan from anywhere, with very good terms, at a rate closer to 5.5%.
A 2% difference. Again a small number. But let's look at the effect in real dollars.
The monthly difference in payment can easily be $200 - $400. Over one year this is $2400 - $4800. Look at this table, using a sample mortgage:
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