Credit score is granddaddy of all grades

By Michelle Singletary

Columnist

What's the difference between 500 and 850? About $337.07.

No I haven't flunked basic math. That $337.07 represents how much more you might pay monthly on a $100,000 30-year fixed-rate mortgage. If your credit score was in the 500 to 850 spectrum.

You think your SAT score was important? Your credit score is the granddaddy of all grades.

Fair, Isaac and Co. of San Rafael , Calif , created the widely used computer-scoring model that assigns people a score based on information in their credit files. It is a three-digit number (generally ranging from 300 to 850) that is used by lenders to judge who might be a better credit risk. The higher the score, the lower the risk, and the less you might pay in interest on a home or auto loan.

It wasn't too long ago that consumers, for the most part, were barred from seeing their credit score. That changed about a year ago. The three major credit bureaus Equifax, Experian and TransUnion allow consumers to obtain a credit score, in most cases for a fee.

Now Fair, Isaac has introduced a new feature on its Web site, www.mufico.com, that the company says is an attempt to show people the link between their credit score and the interest rate offered on residential mortgage, home equity and auto loans.

To obtain your credit score and your credit report, it will cost $12.95 from Equifax (800-397-3742 or www.credit.equifax.com), which will give you a score based on Fair, Isaac's scoring model.

Experian (888-397-3742 or www.experian.com) charges $12.95 for its credit report and credit score combo. TransUnion at 800-888-4213 or www.transunion.com charges from $2 to $9 for a regular credit report and people can request that it include their credit score.

You can get a free score from E-Loan at www.eloan.com www.eloan.com. Keep in mind E-Loan sells loan products