As you consider our service it would do well to look at the price you are already paying for bad credit. If the cost of our service can produce much greater savings, you would be wise to make the investment. Below are just a few examples of the cost of bad credit.
Credit Cards
Most if not all prime credit cards are entirely out of reach to consumers with bad credit. And the few credit cards that are available to them (known as “sub-prime” cards) typically require excessive setup fees or recurring monthly fees, offer very low credit lines, often require cash deposits, and in most cases do not even report your positive credit activity to the credit bureaus.
Automobile Financing
If you are making payments on a car, you are probably paying between $5,000 and $9,000 more just for having bad credit. This added interest shows up every month in a higher payment. Take a look:
| $20,000 CAR PAID OVER 5 YEARS: |
| CREDIT STATUS | RATE | PAYMENT | COST OF BAD CREDIT |
| Perfect | | Mildly Damaged | | Damaged | | | | | $0.00 | | $4,722.54 | | $8,593.30 | |
Home Mortgage
Bad credit in auto financing can really hurt, but it is nothing compared to the cost of bad credit when a home is involved. A typical home can cost between $150,000 and $400,000 more in interest if you are buying the home with bad credit.
| $300,000 HOME PAID OVER 30 YEARS: |
| CREDIT STATUS | RATE | PAYMENT | COST OF BAD CREDIT |
| Perfect | | Mildly Damaged | | Damaged | | | | $1965.90 | | $2413.86 | | $3085.83 | | | $0.00 | | $150,465.72 | $392,374.89
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1 comment:
Most people are not aware of just how much a bad credit score can impact the interest that they pay on loans and credit cards. Unfortunately, bad credit does cost you real money. You can use the examples from this article to get a better understanding of what your credit score may be costing you.
The cost of bad credit is most evident and most expensive when a large ticket item is being purchased. For most people, that is the purchase of their dream home, which in your case means a bad credit mortgage. Here, a bad credit can really hurt you.
My thoughts: make fixing your credit profile a priority. There are numerous ways you can help yourself and all that it will cost you is nothing more but a little bit of your spare time. Check the “Debt” section of this website, read the articles that are posted there. You will get many ideas and tips on how to start managing your debt and your financial profile, which will ultimately result in money and nerve savings.
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