Bad credit ruins lives. The difference between living life and struggling to survive is based completely on credit quality. Let’s look at a car as a simple example. Most people in today’s society need a vehicle to get around.
A $20,000 car loan with good credit will cost approximately $322 monthly. This is based on a 5% interest rate for 72 months. The exact same $20,000 car loan with bad credit will cost approximately $541 monthly. This is based on a 21% interest rate for 60 months (bad credit means a higher rate and shorter term).
This is the same car, but one is costing $219 more EVERY month. The person with good credit will pay $23,184 for their car. The consumer with bad credit will pay $32,460 for the same car. That’s a $9,276 difference. This means the same car will cost the consumer with bad credit 46% more than the one with good credit.
These examples are not extreme. These are based on common interest rates you will actually see on a $20,000 auto loan.
Rent and home expenses are another area where you could get taken for great amounts of interest. A $100,000 mortgage costs a good credit consumer $577 monthly and $207,720 over 30 years. The same home would cost a family with challenged credit $841 monthly and $302,760 over 30 years.
If you have good credit you will pay $264 less per month and save $95,040 over the lifetime of the loan. That means if you have bad credit, you will pay $95,040 more in interest for a $100,000 loan, due to your credit.
Credit cards might cost $116 more monthly based on credit. Utility payments are higher, insurance payments are more, and so are many other regular family expenses.
Most people know credit has an adverse effect on their life. But the truth is, bad credit controls your life. Outrageous amounts of extra interest are being charged each and every month. That debt and those higher payments strap most families, forcing them to live paycheck-to-paycheck.
Bad credit ruins lives. You must realize that bad credit can be controlled and will ruin your score if not controlled.
CreditRepairProgram.com looks forward to helping you achieve your goals, and provide better opportunities for you and your family. Contact Us! We are standing by, ready to help!