What Price Are You Paying For Bad Credit?

What is the Price you are already
paying for Bad Credit?

If you are making payments on a car, you are probably paying between $5,000 and $9,000 more in interest just for having bad credit. This added interest shows up every month in a higher payment.

Credit Status	Rate	Payment	Over 5 years	Monthly Cost of Bad Credit
Perfect	10%	$424.94	$0.00	$0.00
Mildly damaged	14%	$465.37	$4,722.54	$76.17
Damaged	20%	$529.88	$8,593.30	$138.60

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, as indicated below.

Credit Status	Rate	Payment	Over 30 years	Monthly Cost of Bad Credit
Perfect	7%	$655.30	$0.00	$0.00
Mildly damaged	9%	$804.62	$50,155.24	$139.31
Damaged	12%	$1,028.61	$130,791.63	$363.30

If you are looking to make a major purchase in the next 6 to 12 months you should obtain copies of your credit reports from all three credit agencies ASAP. You can learn more about obtaining and reading your reports as well as a variety of ways to dispute negative information by ordering your copy of "Give Yourself Credit".