The Cost of a Low FICO Score

A low FICO score doesn't just make borrowing harder — it makes everything you borrow more expensive. Here's what it actually costs you on two of the biggest purchases most people make: a car and a home.

What a low score costs on an auto loan

Example: a $30,000 2024 Toyota Camry LE with a $3,000 down payment, not including sales tax.

Compared to a qualified borrower at Toyota Financial, a subprime borrower pays 6.8 to 9.7 times more interest depending on their FICO score — about $13,500 more in interest over the life of the loan.

FICO tier	APR	Monthly payment	Total paid	Total interest
Toyota Financial (qualified)	2.75%	$594.65	$28,543.20	$1,543.20
600–699	17.16%	$781.32	$37,503.36	$10,503.36
451–599	22.18%	$853.30	$40,958.40	$13,958.40
450 or lower	23.65%	$875.03	$42,001.44	$15,001.44

Source: U.S. News — average auto loan interest rates

What a low score costs on a home mortgage

This estimate is based on the average U.S. single-family home price of $425,000 with a 20% down payment and a 30-year fixed-rate mortgage.

A subprime borrower will typically need a higher down payment — up to 35% — and a rate of 10% or higher. Compared to a prime borrower, a subprime borrower can pay over $280,000 more over the life of the loan.

And if you sell your home in 10 years, the subprime borrower still owes $309,190 to pay off the bank, versus $289,881 for the prime borrower.

FICO score	Average mortgage APR	Monthly payment	Total paid	Interest paid
Subprime	10%	$2,984	$1,074,146	$734,140
620–639	8.31%	$2,569	$924,718	$584,718
640–659	7.77%	$2,441	$878,580	$538,580
660–679	7.34%	$2,310	$842,468	$502,468
680–699	7.12%	$2,290	$824,220	$484,220
700–759	6.95%	$2,251	$810,223	$470,223
760–850	6.73%	$2,201	$792,259	$452,259

The pattern is clear: every tier you climb on your FICO score saves you real money — often tens or hundreds of thousands of dollars over a single loan.