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If you are making payments on a car, you are probably paying between $5,000 and $9,000 more in interest just for having bad credit. This added interest shows up every month in a higher payment.
|
Perfect |
10% |
$424.94 |
$0.00 |
$0.00 |
Mildly damaged |
14% |
$465.37 |
$76.17 |
$4,722.54 |
Damaged |
20% |
$529.88 |
$8,593.30 |
$8,593.30 |
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Bad credit in auto financing can really hurt, but it is nothing compared to the cost of bad credit when a home is involved. A typical home can cost between $50,000 and $130,000 more in interest if you are buying the home with a low FICO score, as indicated below.
|
Perfect |
7% |
$655.23 |
$0.00 |
$0.00 |
Mildly damaged |
9% |
$804.62 |
$139.31 |
$50,155.24 |
Damaged |
12% |
$1,028.61 |
$363.30 |
$130,791.63 |
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As you can see, having a low score can cost you hundreds of dollars per month. That is why it is very important to obtain and keep a high score.
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