 |
|
How much does bad credit cost? |
As you thinking of using a credit repair service? You would do well to look at the price you are already paying for bad credit. If the cost of our services 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 exorbitant 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
|
10%
14%
20%
|
$424.94
$465.37
$529.88
|
$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 $50,000 and $130,000 more in interest if you are buying the home with bad credit.
$100,000 home paid over 30 years: |
CREDIT STATUS |
RATE |
PAYMENT |
COST OF BAD CREDIT |
|
Perfect
Mildly Damaged
Damaged
|
7%
9%
12%
|
$655.30
$804.62
$1,028.61
|
$0.00
$50,155.24
$130,791.63
|
|
