Can You Afford Bad Credit?No credit. Bad credit. No problem. You hear lenders saying it all the time but who’s really paying the price? You! Sub prime lenders charge higher interest rates, usually three percentage points above what prime borrowers with good credit pay plus thousands of dollars in fees. According to estimates, approximately 60 million Americans are negatively affected by derogatory information contained in their credit reports- that's a staggering figure. The cost of poor credit goes much deeper than just trying to qualify for a small loan or credit card. Your credit reports reflect your character as lenders, landlords, employers and even insurance companies view your credit worthiness by how well you manage and pay your debts. Managing credit correctly can ensure financial well-being. Continual late payments, inaccuracies and errors reflect negatively on your character and limit your financial options. While we can see the importance of good credit, maybe you have not given much thought to how much your negative credit is costing you. You are being punished for your lacking credit record in almost everything you do. Your credit score determines your ability to borrow. Credit Cards Most if not all prime credit cards are entirely out of reach to consumers with derogatory credit. And the few credit cards that are available to them (known as “sub-prime” cards) typically require setup fees or recurring monthly fees, offer very low credit lines, often require cash deposits, and in many 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 a low credit score. This added interest shows up every month in a higher payment. Home
Mortgage
Negative 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. Your credit reports decide just how much you will be charged in interest on any given loan, if you can even get a loan. Above, we have given you a few examples of the cost of your poor credit and how much the industry is charging you. Can you afford to continue on down this expensive road? Save Your Credit Rating’s main focus is on repairing your credit report. We have helped thousands of Americans repair their credit reports by removing inaccurate, misleading, or unverifiable marks (in other words, "questionable" negative credit). From charge-offs to tax liens, we have challenged virtually every credit problem imaginable. Click here to find out more!
Bad Credit to Credit Repair
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