Credit Score - How Bad Credit Affects You

"...Let's Face it - bad credit can cost you a lot of money in the long haul... by: Leslie Collins - 3/2007
Credit Repair Links Understanding Your Credit Score How Bad Credit Affects You Getting Credit After Foreclosure Consequences of Bad Credit How to Increase Your Credit Score Credit Repair Program Free Credit Report Why Use Professional Credit Repair Service? First Time Mortgage Bad Credit Bad Credit Home Loan Refinance Bad credit scores will do so much damage to your finances that you will spend thousands more than you really need to over the course of a loan, many times the excess spending could have been prevented!. If you are considering buying a home, car or anything else that requires you to qualify for a monthly payment, your credit score will determine the interest rate on borrowed funds.

Credit Cards

If you have bad credit, the chance of receiving a prime credit card is almost impossible. "Sub-prime credit cards" may be available for you - however - they come with exorbitant setup fees. Some even charge a recurring monthly fee - have low credit lines - and worst of all - don't even report your positive credit history to any credit bureaus. Find out your credit score : free credit score

Auto Financing

You could be paying an extra $4000-$8000 on your auto loan, just for having a poor credit score. The higher interest rate cause the payments to increase , really adding up.
*$20,000 car paid over 5 years:
CREDIT STATUS RATE PAYMENT TOTAL COST
PERFECT 10% $424.94 $0.00
MILDLY DAMAGED 14% $465.37 $4,722.54
DAMAGED 20% $529.88 $8,593.30

Home Mortgage

An auto loan can really jump in payment with bad credit - but that's nothing when compared with a 30 year mortgage. The cost of poor credit can be between $50,000 to $130,000 dollars extra over the length of the mortgage.
Find out your credit score : free credit score
*IMPACT ON HOME LOAN - VARYING CREDIT STATUS/ $100,000 home paid over 30 years: :
CREDIT STATUS RATE PAYMENT TOTAL COST
PERFECT 7% $655 $0.00
MILDLY DAMAGED 9% $804 $50,155
DAMAGED 12% $1028 $130,791

Know your Credit Score - Free Credit Report
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