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Note: The Center For Debt Management suggest you Monitor Your Credit Report regularly. Lexington Law Firm is our preferred choice for fast and effective credit repair. Lexington Law
is reputable and is a member of the BBB. They have a satisfactory record with the bureau.
How Bad Credit Affects You
Very few things in life can have a more devastating effect on your lifestyle than a poor credit score. A low credit score can cost you hundreds or even thousands of dollars per month.
Credit Cards
Most prime credit cards are entirely out of reach to consumers with bad credit. And the few credit cards that are available to them (known as "sub-prime" cards) typically require exorbitant setup fees or recurring monthly fees, offer very low credit lines, often require cash deposits, and in most cases do not even report your positive credit activity to the credit bureaus.
Automobile Financing
If you are making payments on a car, you are probably paying between $5,000 and $9,000 more just for having bad credit. This added interest shows up every month in a higher payment. Just take a look at these figures.
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$20,000
car paid over 5 years:
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CREDIT STATUS
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RATE
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PAYMENT
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COST OF BAD CREDIT
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Perfect
Mildly Damaged
Damaged
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10%
14%
20%
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$424.94
$465.37
$529.88
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$0.00
$4,722.54
$8,593.30
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Home Mortgage
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.
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$100,000
home paid over 30 years:
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CREDIT STATUS
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RATE
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PAYMENT
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COST OF BAD CREDIT
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Perfect
Mildly Damaged
Damaged
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7%
9%
12%
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$655.30
$804.62
$1,028.61
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$0.00
$50,155.24
$130,791.63
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Note: The Center For Debt Management suggest you Monitor Your Credit Report regularly. Lexington Law Firm is our preferred choice for fast and effective credit repair. Lexington Law
is reputable and is a member of the BBB. They have a satisfactory record with the bureau.
Need to Refinance or Find a Great Home Loan? Go to The Mortgage Center
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Click Below To Check Out More Financial Resources
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The Center For Debt Management™
Helping Consumers Save Money and Reduce Debt Is Our Only Business!™
We invite you to explore the sectors listed below. We promise that you'll find exceptional values, offers and resources in which to reduce your living expenses and to enjoy life!
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Debt Management and Financial Services! The Internet's oldest and most comprehensive debt management
agency! Resources for debt management, consumer credit counseling, debt consolidation, debt reduction settlements, legal aid, financial aid, loans and financing, credit repair, credit reports, insurance quotes, income sources, tax assistance, and more.
Established in 1989 and serving the online community since 1992!
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How Bad Credit Affects You: Affect of a Poor Credit Score
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