NCA Credit Repair - Guide to Understanding Credit and Credit Reports

How much does a low score cost you?

Credit Cards Most if not all prime credit cards are entirely out of reach to consumers with bad credit. And the few credit cards that are available to them (known as "sub-prime" cards) typically require exorbitant setup fees or recurring monthly fees, offer very low credit lines, often require cash deposits, and in most cases do not even report your positive credit activity to the credit bureaus.

Automobile Financing
If you are making payments on a car, you are probably paying between $5,000 and $9,000 more just for having bad credit. This added interest shows up every month in a higher payment. Take a look.

$20,000 car paid over 5 years:
CREDIT STATUS	RATE	PAYMENT	COST OF BAD CREDIT
Perfect Mildly Damaged Damaged	4% 8% 15%	$460.41 $506.91 $581.71	$0.00 $2,790.00 $7,278.00

Home Mortgage
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 $60,000 and $190,000 more in interest if you are buying the home with bad credit.

$150,000 home paid over 30 years:
CREDIT STATUS	RATE	PAYMENT	COST OF BAD CREDIT
Perfect Mildly Damaged Damaged	5% 7% 10%	$805.23 $997.95 $1,316.36	$0.00 $69,379.20 $184,006.90

As you can see, a low score can cost you hundreds of dollars per month. Which is why it is so important to obtain and maintain as high a score as possible. In addition to the above items, bad credit can cost you a bundle on many other things such as insurance rates, investment opportunities, and even job opportunities.

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INTRODUCTION

FACTORS THAT INFLUENCE YOUR CREDIT

THE CREDIT SYSTEM

RISK FACTORS

HOW MUCH DOES A LOW SCORE COST YOU

HOW ARE CREDIT SCORES CALCULATED

WHAT CAN YOU DO

MAINTAINING AND IMPROVING YOUR CREDIT SCORE