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THE COST OF BAD CREDIT
Bad credit? No credit? No problem. You hear lenders saying it all the time but who’s really paying the price? You! Sub prime lenders charge higher interest rates, usually three percentage points above what prime borrowers with good credit pay plus thousands of dollars in fees. Ultimately this vicious cycle of accepting sub prime offers can result in catastrophic debt overload which then leads to bad marks on a credit report or even bankruptcy.

It is estimated that approximately 60 million Americans are negatively affected by derogatory information contained in their credit reports- that's a staggering figure. The cost of poor credit goes much deeper than just trying to qualify for a small computer loan or secured credit card. Your credit reports reflect your character! Lenders, landlords, employers and even insurance companies view your credit worthiness by how well you manage and pay your debts.

Credit is a cost effective weapon to fight poverty and it serves as a vehicle in the overall well-being of the socioeconomic. Managing credit correctly can ensure financial well-being. Continual late payments, inaccuracies and errors reflect negatively on your character and limit your financial options. While we can see the importance of good credit, maybe you have not given much thought to how much your bad credit is costing you. You are being punished for your lacking credit record in almost everything you do. Your credit score determines your ability to borrow.

Consider this. Your credit reports decide just how much you will be charged in interest on any given loan, if you can even get a loan. Below, we have given you a few examples of the cost of your bad credit and how much the industry is charging you. Can you afford to continue on down this expensive road?

Car Financing
Car dealers can use errors on your credit report to charge you higher interest rates! You could be one of the more than 40 million people who are paying subprime rates for car financing. If your credit is impaired, you are paying much more for your loan then others. Why continue to see others get the preferred rates?

With the above illustration, you can see how much you are paying extra per month for the same loan! Add that up annually and the difference is massive. That's over $1020.00 per year in added interest and over $5100.00 more per term! Why continue to lose all of that extra money simply based on inaccurate negative credit reports?

Home Loans
While the impact of expensive auto financing can be detrimental, it is nothing compared to how much you can be paying for bad credit with a home loan. If your credit score falls below 640, you could be paying too much for a home loan or refinance.

The bottom line?
The cost of bad credit is high, no doubt -but the cost of repairing your credit can also be very expensive and many times you achieve little or no results. Credit repair is one of the most popular search terms on the Internet and consumers' continue to search for quick fixes. If you can learn anything from this page, understand there are NO quick fixes. Yes it is possible to repair your credit- millions do but don't have such high expectations that you're sorely disappointed in the end. This website offers you many tools to repair your credit including many free of charge. Use the credit library and learn what the experts know and repair your credit record yourself. Just remember good credit takes time and once you've got it, don't lose it. Don't want to do the work yourself? Lexington Law is a very reputable plan whose company has been around for 15 years.

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