The cost of bad credit is high! It will cost you significantly more for everything you purchase, when compared to someone who has good credit. We have prepared a comparison using typical differences in a rate for the payment of a mortgage and for an auto loan. This comparison is only comparing the difference in the typical spread in the rate. This is not to be considered a current market rate or an offer.
Example: 30-year mortgage for $150,000
| Mortgage | $150,000 – 30 Year Term | ||
| Credit Rating | Good Credit | Bad Credit | Ugly Credit |
| Interest Rate | 6% | 7.5% | 9% |
| Monthly PPI | $899.33 | $1,048.82 | $1,206.93 |
| Extra Cost/Mo | – | $149.49 | $307.60 |
| Extra Cost/Yr | – | $1,793.88 | $3,691.12 |
| 5 Year Cost | – | $2,138.40 | $5,383.20 |
Example: 60-month Auto Loan for $15,000
| Auto Loan | $15,000 – 60 Month Term | ||
| Credit Rating | Good Credit | Bad Credit | Ugly Credit |
| Interest Rate | 5% | 10% | 17% |
| Monthly PPI | $283.07 | $318.71 | $372.79 |
| Extra Cost/Mo | – | $35.64 | $89.72 |
| Extra Cost/Yr | – | $427.68 | $1,076.64 |
| 5 Year Cost | – | $2,138.40 | $5,383.20 |
Bad Credit can also affect:
- Insurance rates on auto and home
- Job Opportunities
- Credit card rates
- Cell phone and other utilities (deposits to start activation, or declined)
- Home and auto purchases
We realize you probably already know the cost of having bad credit, otherwise you wouldn’t be searching for a solution. However, we feel once you see the difference you may act on it, if not with us, at least do it somehow.