Good credit has become a necessity. From buying a house to being able to land a job credit affects your lifestyle. Given the economic challenges of today, there has never been a better time for improving your credit score to achieve the American Dream. The average credit score in the U.S. is 678 and has been low due to the housing market collapse.
The people who fall under the poor to uncertain credit, experience increased interest rates that substantially increase the cost of living, making even small purchases seem difficult. A bad credit score very quickly increase interest payments, and prevent you from getting new credit lines.
Numbers below make it easy to see the financial burden created by bad credit, but the real cost is more difficult to measure. bad credit affects more than your finances, it can also attack your sense of security, and limit your personal freedom.
Mortgages: The easiest way to see the savings you will get from increasing your credit score can been seen in your home loan.
We based our table off of a the 30-year fixed home mortgage . Then the APR’s were estimated in Indiana on FICO scores between 620 and 850 the loan is 200,000. Not only can you see the monthly payment going down but also the added lifetime cost increasing significantly. If the credit score is raised. Any FICO scores below a 620 will likely not even be accepted for a loan.
Auto Loans: The numbers are based off of a new 60-month auto loan. The APRs are estimated based on the following assumptions: A Loan Amount of $30,000, 60 months and Interest rates are fixed for the term of the loan. The cost savings are significantly lower for an individual with excellent credit.
As you can see from the chart above bad credit hurts. Thousands of dollars can be saved by having good credit. We offer a solution to this problem and will work with you until you’re satisfied with your credit score rating!
Credit Cards: Having bad credit adds up, you will end up paying a lot more in interest on your rates. If a person with bad credit gets a credit card, the annual fees are higher and the interest rates are higher. You can either pay the higher fees and interest rates or do something about it and fix your credit so that you can have the peace of mind knowing that you are saving money.