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What
is the price you are already paying for bad credit? A quick
glance at the figures below shows that a good credit rating can
save you hundreds or even thousands of dollars in interest
charges.
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Example
1: Automobile Financing
If
you are making payments on a car, you are probably paying dearly
for having bad credit. This added interest shows up every month in
a higher payments. Take a look: |
| Credit
Status |
Rate |
Payment |
Over
5 years |
Monthly
Cost of
Bad Credit |
| Perfect |
10% |
$424.94 |
$0.00 |
$0.00 |
| Mildly
damaged |
14% |
$465.37 |
$4,722.54 |
$76.17 |
| Damaged |
20% |
$529.88 |
$8,593.30 |
$138.60 |
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Example
2: 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. If you
are buying a home with bad credit, take a look:
|
| Credit
Status |
Rate |
Payment |
Over
30 years |
Monthly
Cost of
Bad Credit |
| Perfect |
7% |
$655.30 |
$0.00 |
$0.00 |
| Mildly
damaged |
9% |
$804.62 |
$50,155.24 |
$139.31 |
| Damaged |
12% |
$1,028.61 |
$130,791.63 |
$363.30 |
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