What is the Price you are already paying for Bad Credit?
Borrowers with bad or poor credit reports are charged higher interest rates - when they can get a loan at all. The purchase ends up costing them hundreds or thousands of dollars more than it would if they were charged competitive interest rates. It's an ironic fact of life that the very people who can least afford it end up having to pay more for big purchases.
The chart below demonstrates the how much the cost of a typical car loan can vary with increasing interest rates.
| Credit Status | Rate | Payment | Over 5 years |
Monthly Cost of Bad Credit |
| Perfect | 10% | $424.94 | $0.00 | $0.00 |
| Mildly damaged | 14% | $465.37 | $4,722.54 | $76.17 |
| Damaged | 20% | $529.88 | $8,593.30 | $138.60 |
Bad credit in auto financing can hurt, but imagine what the cost of bad credit on a home mortgage. A typical home can cost between $50,000 and $130,000 more in total borrowing cost, and hundreds more each month in payments, as demonstrated in the chart below.
| Credit Status | Rate | Payment | Over 30 years |
Monthly Cost of Bad Credit |
| Perfect | 7% | $655.30 | $0.00 | $0.00 |
| Mildly damaged | 9% | $804.62 | $50,155.24 | $139.31 |
| Damaged | 12% | $1,028.61 | $130,791.63 | $363.30 |
If you are looking to make a major purchase in the next 6 to 12 months you should obtain copies of your credit reports from all three credit agencies ASAP.
Download the essential Credit Repair Guide "Give Yourself Credit" and start on the road to recovery.
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