The High Cost Of Bad Credit

The High Cost Of Bad Credit

The number one factor considered before someone makes a purchase is how much is it going to cost. And what people mean by “cost” is actually not “price” but rather the “payment”. Payment is much more important to the every day American than price because payment is something affects people on a daily basis; it becomes part of their monthly budget and directly impacts all other aspects of their life. Think about how much different your life would be if your bills cut be cut by a third or maybe even half. You will instantly feel much richer as if you had been given a big raise. If you have been suffering with bad credit then this is exactly what credit repair can offer you, a way to have more money every single month.

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Let’s look at the car payment as a prime example of the difference between having a poor credit score and having a great score. The interest rate on a car loan can vary dramatically from as low as 3% apr for those with great credit to 19% to those to with poor credit. What this means is let’s say you are purchasing a car valued at $25,000. With a great credit score on a 60 month note you can expect to pay $449.00 while with a poor credit score that same car will have a payment of $649.00. This is a difference of $200 every single month. That is $200 that could be used for gas, groceries, going out, cable, paying off debt. or building a savings. Thats $2400 over a year and $12,00 over the 5 years of the note. With good credit you basically just saved half the cost of another car.

This is not just an isolated example either. With great credit you will enjoy lower insurance costs, lower mortgage payments, and lower credit card payments. This is why when we are talking to potential clients about credit repair we try explain that having good credit is not only important because it will allow you make purchases but it is also an investment that will pay dividends every single month.

2017-10-24T13:12:55+00:00 April 5th, 2016|Credit Cards|