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The Actual Cost of (Bad)
Credit
Considering Total Score Repair is a great
step forward.
As previously noted,
bad
credit is very expensive and you would do
yourself well to look at the actual cost.
Below are just a few examples of the cost of
bad credit.
Credit Cards
Most, if not all, prime credit cards
are
beyond the reach of consumers with bad
credit. And the few "sub-prime" credit cards
that are available to them usually require
high setup fees, recurring monthly fees,
very low credit limits, can require cash
deposits, and may not even report your
positive credit activity to the credit
bureaus because of the additional cost to
them to do so. First Premier Bank in S.D. is
now sending out offers with a 79.99% A.P.R.
You don’t want to find yourself in the trap.
Automobile Financing
If you plan to purchase a car,
you will
probably have to pay $8,000, or more, just
for having bad credit. This added interest
shows up regularly in higher monthly
payments. Here is a typical mid-line car
purchase:
Less than 500 credit score – not likely at
any interest rate - a tote-the-note lot
could be the only choice available
Home Mortgage
Bad credit in auto financing can really hurt,
but it pales compared to the cost of
bad credit when a home is involved. The
typical home can cost between $50,000 and
$130,000 more in interest if you are buying
the home with bad credit. Look at this
example:
Less than 620 credit score – not likely to
get a home loan
*Lenders have different qualifications –
interest rates can vary and will affect
monthly payments and total cost. Good credit
can cost less and bad credit can cost much
more than these examples.
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