There is no direct correlation between lower credit scores and higher closing costs. However, borrowing with poor creditworthiness limits access to credit, which can increase the cost of borrowing. For example, suppose you have a FICO score of 510 and only find one lender who is willing to approve your FHA loan. If this lender charges a higher-than-average start-up fee, you will not be able to purchase from other lenders for lower fees.