Repair Bad Credit
Repair Bad Credit Fast
The majority of individuals are unaware of the extent to which a bad credit history affects their ability to borrow. It is not unusual for us to hear comments like “my credit score couldn't be too bad - the bank has loaned me money” or I have no problem getting a cash advance.
What people don't always ask is - at what cost? A damaged or bad credit history means that you will pay a lot more for the things that you buy and the money that you borrow - much more!
What does your credit report say? Find out today. Submit a free credit evaluation form online at one of the many websites offering this service, or request free annual copies of your credit reports from the free annual credit reports website.
The examples illustrated below will demonstrate just how severe the added costs resulting from bad credit are.
MSN reports the following example using FICO scores.
One consumer with a FICO score between 720 and 850 may be eligible to receive a rate of 5.922% on a $200,000 30-year fixed mortgage. This would mean that this consumer has a monthly payment of $1,189 and $228,072 in interest over the life of the loan. Another consumer with a lower FICO score - between 675 and 699 - may be eligible to receive a rate of 6.584% on the same $200,000 loan. The consumer with the lower Fico score has a monthly payment of $1,275, and $259,074 in interest over the life of the loan. This consumer will pay $31,002 more than the consumer with the stronger Fico score.
Consider the next example for automobile financing
Those individuals with bad credit who are making payments on a typical automobile loan are likely paying between $5 - $9,000 more in interest. They are paying this solely because they had ‘bad credit’ when taking out the loan. See the chart below.
$20,000 automobile paid over 4 years:
| FICO Score | Rate | Payment | Interest on loan paid |
|---|---|---|---|
| 720-850 | 6.3% | $472 | $2,670 |
| 660-689 | 8.5% | $496 | $3,819 |
The consumer with the lower Fico score paid $1149 more for the same loan.
These two examples clearly show, in dollar terms, the cost of having ‘bad credit’. The bottom line - bad credit always costs you! This rule does not only apply to automobiles and homes - it applies to absolutely everything you buy and every dollar you borrow. An individual with bad credit will pay more every time.
Why should you repair bad credit? You should repair bad credit immediately and save yourself thousands of dollars in your future!