So You
Want To Get Over the Bad Credit Loser
Blues...
So
how did you feel when the lending
officer announced that you had "BAD CREDIT"?
From: Kate Rieger,
President
Second Opinion Solutions Group, LLC
Corydon, Southern Indiana
Thursday 10:49pm
Kate Rieger
The Cost of Late Pays -- Your Retirement?
|
There you sat, humiliated because you
didn't realize just how much all those
late credit card payments would hurt
your credit.
Many of us could enjoy an early
retirement if we had all the we've money
blown on high interest rates caused by
bad credit. The example below is
provided by the Fair Isaac Corporation,
the folks behind your FICO score. The
lower your FICO scores the more you can
expect to pay for your loan. For
example, on a $25,000 36-month loan...
| If your FICO score is | Your interest rate is | Your monthly payment |
| 36 Month Auto Loan |
| 720 - 850 |
7.176% |
$774 |
| 690 - 719 |
7.981% |
$783 |
| 660 - 689 |
9.460% |
$800 |
| 620 - 659 |
10.948% |
$818 |
| 590 - 619 |
14.257% |
$858 |
| 500 - 589 |
14.948% |
$866 |
As you can see in this example using today’s national rates, a person with a FICO score of less than 660 will pay $44 - $92 more per month on car payments. Over three years, the total difference is $1,584 to $3,312 more than the person with the 720 score. They can use the money they save on a down payment!
Ok, so you can live with that, lets try the same experiment for a 30 year fixed mortgage.
For example, on a $216,000 30-year, fixed-rate mortgage:
| If your FICO score is | Your interest rate is | Your monthly payment | | 30 Year Fixed Rate Mortgage | | 760 - 850 | 6.27% | $1,332 | | 700 - 759 | 6.49% | $1,363 | | 680 - 699 | 6.66% | $1,389 | | 660 - 679 | 6.88% | $1,419 | | 640 - 659 | 7.31% | $1,482 | | 620 - 639 | 7.85% | $1,563 |
As you can see in this example using today’s national rates, a person with a FICO score of 760 or better will pay $231 less per month for a $216,000 30-year, fixed-rate mortgage than a person with a FICO score of 620 – that’s a savings of $2,772 per year.
Every time a lender does an inquiry on your credit the credit agency earns revenue. The lower your score is the harder it is to get loans. A person with "bad credit" has 70% more inquiries on their file than a person with "good credit". You continue to search, lenders review your report, this causes your score to go lower and lower, and so the cycle continues. Your score goes down, the credit bureau's revenue goes up.
If you are looking to dispute entries on your credit report its important to understand the various sections of your
credit report.
You can
find out about how to read your credit
report and ways to fight bad credit
entries on your credit reports.
All you need to do to start is to sign
up for my free mini-course entitled
"Extreme Debt Reduction & Credit Score Boosting Strategies That 98% Of Borrowers
Will Never Know -- And How
You Can Learn These Strategies Too..."
Well, the title is a bit
long, but the course has 7 concise lessons that you can refer back to at any
time. To
start this free, online mini-course, please complete the short form below
and you can start immediately -
Yes Kate - I
want to start today!
What others are saying...
Hi Kate,
I do want to thank you so much for your quick and thorough responses to my questions. I am amazed at the amount of information you manage to deliver. Your
program is terrific.
You give an awful lot of personal attention that can never come from a computer
program.
Thanks for everything - I mean it!
Melissa
Louisville, KY
__________________________________________________
Dear Ms Rieger,
God Bless You!
You treated me like I was someone
important. I thank you for that and for showing me how to improve my FICO
scores. You are truly amazing!
Sincerely,
Roberta D.
Jeffersonville, IN
__________________________________________________
Credit Rejuvenations Rocks!
Dave
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P.P.S.
Remember, if you haven't done it yet, make sure you
get your free Special
Mini-Course entitled "Extreme Debt Reduction &
Credit Score Boosting Strategies That 98% Of Borrowers Will Never Know --
And How You Can Learn These Strategies Too..." by completing
the sign-up form above.
Warmest Regards,
 |
