101: Learn About Credit

Lesson 1: What is credit?

Lesson 2: What is a credit score?

Lesson 3: What does my score mean?

Lesson 4: How much does bad credit cost?

201: Learn About Credit Repair

301: Learn About Us

401: Learn About Credit Laws

How much does bad credit cost?

Learn About Credit 101:Lesson 4 of 4

Credit “U” Home

Cost of Bad Credit

Automobile Financing:
If you are financing a car and have bad credit you will be paying thousands of dollars more due to excessive interest rates charged by the lender. Had your credit been restored prior to purchasing the car, that extra money would be in YOUR pocket, not the lenders. The extra interest is calculated into the car payment leaving you with a dramatically higher payment, one you and your family can probably not afford. One of the first things that our members often do once their credit is repaired is to refinance their automobile for a “fraction” of their current payment, or, buy twice the car at nearly the same payment…

Example: $25,000 car loan paid over 5 years:

Home Mortgage:
The “American Dream” of owning your home is out of reach for most people with credit problems. As you can see below, over time, even mildly damaged credit will cost a fortune in additional interest rates. This forces credit challenged consumers to raise their families in less desirable neighborhoods and pay off someone else’s mortgage! This leaves the credit challenged family holding year’s worth of rental receipts and nothing to show for it.

Example:$200,000 house mortgage paid over 30 years: