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 |