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:: Repairing Your Credit
How Errors in Your Credit Report Can Affect You
Article 1 of 9 - Legal Helpers' article series on credit repair begins with a discussion of how bad
credit can affect 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. Take a look;
| $20,000 car paid over 5 years |
| CREDIT STATUS | RATE | PAYMENT | COST OF BAD CREDIT |
| Perfect | 10% | $424.94 | $0.00 |
| Mildly Damaged | 14% | $465.37 | $4,722.54 |
| Damaged | 20% | $529.88 | $8,593.30 |
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.
| $100,000 home paid over 30 years |
|
CREDIT STATUS | RATE | PAYMENT | COST OF BAD CREDIT |
| Perfect | 7% | $655.30 | $0.00 |
| Mildly Damaged | 9% | $804.62 | $50,155.24 |
| Damaged | 12% | $1,028.61 | $130,791.63 |
In our next article, we'll discuss the legal issues surrounding credit reports.
Learn about your financial options
If you are in debt and would like to find out more about your legal options, give us a call at 800-260-1402 or fill out our free legal evaluation form. The evaluation is free, no obligations attached.
If you think that your credit report might contain errors visit
www.creditrepair.com or call 866-899-5426. Lexington Law may be of help to you.
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| Disclosure:
Legal Helpers has entered a limited arrangement with Lexington Law firm to provide credit repair services to those referred by Legal Helpers in exchange for a small finders fee.
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