How much does bad credit cost?
As you consider retaining JRW Top Beacon you would do well to look at the price you are already paying for bad credit. Below are just a few examples of the cost of bad credit.
Automobile Financing
If you are car payments, you are probably paying between $1,680 and $4,740 more just for your poor credit. This interest shows up every single month as a higher payment.
$15,000 car paid over 5 years:
| Credit Status | Rate | Payment | Cost of bad credit | |
|---|---|---|---|---|
| Perfect | 6.88% | $294 | $0.00 | |
| Mildly damaged | 9.78% | $322 | $1,680 | |
| Damaged | 14.95% | $373 | $4,740 |
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 $10,000 and $158,000 more in interest if you are mortaging the house with poor credit.
$150,000 home paid over 30 years:
| Credit Status | Rate | Payment | Cost of bad credit | |
|---|---|---|---|---|
| Perfect | 6.45% | $726 | $0.00 | |
| Mildly damaged | 7.5% | $905 | $10,440 | |
| Damaged | 12.15% | $1,267 | $158,760 |
