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How Much Does Bad Credit Cost? March 22, 2011

Posted by CredZoo - Tame Your Credit in About CredZoo.
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The cost of credit repair is small compared to the cost of living with bad credit. Below are a few examples from CredZoo.org of the cost of bad credit:

Auto Loan

If you are making vehicle payments, you are, most likely, paying between $4,000 and $10,000 more over the course of the loan just for having credit score issues. This added interest shows up every month in a higher payment.

Example: Car Loan $23,000 Vehicle Financed for 5 Years

Credit Status Rate Payment Interest Paid
High Credit Score 3% $413 $1,796
Slightly Damaged 9% $477 $5,646
Damaged 18% $584 $12,042

Home Loan

Damaged credit on a vehicle is nothing compared to the effect of damaged credit on a home loan. A typical home can cost between $180,000 and $300,000 more in interest of the 30 year loan, if you are buying the home with damaged credit.

Example: $120,000 home paid over 30 years:

Credit Status Rate Payment Interest Paid
High Credit Score 7% $798 $167,410
Slightly Damaged 9% $966 $227,596
Damaged 13% $1,327 $357,878

$190,000 home paid over 30 years:

Credit Status Rate Payment Interest Paid
High Credit Score 7% $1,264 $265,066
Slightly Damaged 9% $1,529 $360,361
Damaged 13% $2,1202 $566,640
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