subject: The Overall Effect of How Bad Credit Can Cost You Major Dollars Over Time [print this page] Perhaps you're already aware of the fact that bad credit can cost you money, but what you may not know is just how much money you can lose if you don't get credit repair now. We are not talking about thousands of dollars here we're talking about millions.
It is no secret that having a poor credit score can pave the way for you to spend more and save less. People who have low credit scores get in trouble with their creditors, and they usually pay for their financial shortcomings in more ways than one. For example, if you have poor credit and you applied for an auto loan, chances are your loan won't be granted or, in the rare instance that it is, you'll be asked to give a much higher down payment and to subscribe to strict terms. This goes the same for a school loan, medical assistance loan, etc.
But perhaps nothing can leak more money from your pocket than the mortgage. The interest rate that creditors will ask you to pay when they find out that you have bad credit is simply incredible. In today's market, the average price for homes is over five-hundred thousand dollars. Just think. If the loan you want is for $300,000, which is payable for 30 years, you'll be paying double of what a person with good credit will be paying every month, with an APR of six to ten percent, depending on how poor your credit score is. Can you even do the math? That's half a million dollars!
Bad credit can also attack you financially via credit cards. A person who has good credit is given a lower interest rate by banks. On the other hand, a person who has bad credit is asked to pay for a much higher interest rate, sometimes triple than what people enjoying good credit do. This means that a debt of $2,200 can easily stretch to $6,600. What's worse is that using credit cards is a vice that many people have - it's even considered an addiction to some. If you have a poor credit score, you need to be really extra careful about using your credit cards. Credit repair will require you to leave those cards at home, for one thing, and to live within your means.
And of course, there's insurance. All kinds of insurance are likely to cost way more for a person with poor credit than for one who has a commendable credit history. Credit scores are generally taken into account by various types of creditors, from financial institutions to independent lenders. Insurance agencies know that those who have poor credit tend to make more claims, which makes them a risk or a liability for insurance businesses.
It's not just about the money. Your health may also suffer if you continue living with bad credit. The stress of paying a lot of money in almost every aspect of your life is bound to take a toll on your physical, mental, and emotional state. It's of utmost importance that you go for credit repair before things take a swift turn for the worse. Attorney assisted credit repair services are now available, and they can really help you get your finances back on track.
The Overall Effect of How Bad Credit Can Cost You Major Dollars Over Time
