Credit Repair and the Cost of Negative Credit  

If you have bad credit, you will pay more than a person with a Perfect, Good, or Mildly  Damaged credit rating.  Why is it that borrowers with bad credit pay more?  When banks review your credit report and see late payments, collection accounts, charge-off accounts, and repossessions, they consider you a credit risk and tend to offer “subprime” lending rates.  As a “subprime” borrower, you will pay 4% to 12% higher interest rates when re-paying loans for a home, car or credit card.

The charts below show the differences in costs paid between someone with Perfect, Good, Mildly Damaged and Badly Damaged credit ratings on a $200,000 mortgage and a $20,000  car loan. 

Cost  of  Negative Credit on a $200,000 Mortgage Loan

Credit Status

Rate1

Monthly Payment

Cost of Credit over 30 years

Amount over paid because of bad credit

 
Perfect

5%

$1,073.64

$0.00

$0.00

 
Good

8%

$1,398.43

$503,434.80

$116,924.40

 
Mildly damaged

10%

$1,740.38

$626,536.80

$240,026.40

 
Badly damaged

12%

$2,057.23

$740,602.80

$354,092.40

1 National Average interest rates from Bankrate.com, August 2011.

Consumers with a Perfect credit status will pay the least amount of interest over 30 years.

Don’t wait 7 – 10 years to remove negative credit items from your report.  Call Credit Engineer at 703-642-2428 to start improving your credit today.  Sign-Up Now!

Are you looking to purchase a home?  Have you been denied credit to qualify for a home?  Click on Sign-Up Now!  to begin the process of improving your credit status and your goal of purchasing a home today.  Click on Bad Credit Home Loans to learn more about how Credit Engineer will help you improve your credit and assist you with obtaining a home loan.  Sign-Up Now!

 Cost of Negative Credit on a $20,000 Car Loan

Credit Status

Rate1

Monthly Payment

Cost of Credit over  5 years

Amount over paid because of bad credit

 
Perfect

4%

$368.33

$0.00

$0.00

 
Good

6%

$388.68

$23,320.80

$1,221.00

 
Mildly damaged

8%

$405.53

$24,331.80

$2,232.00

 
Badly damaged

10%

$424.94

$25,496.40

$3,396.60

1 National Average interest rates from Bankrate.com,  August 2011.

Consumers with a Perfect credit status will pay the least amount of interest over 5 years.

Don’t wait 7 – 10 years to remove negative credit items from your report.  Call Credit Engineer at 703-642-2428 to start improving your credit today.  Sign-Up Now!  Bankruptcy information, Collection accounts and Charge-Off credit may be removed or improved when you utilize credit repair consultants from Credit Engineer.   

Do you need a new or used car?  Have you been denied credit to finance a new or used car?  Have you been told that you need a co-signer to qualify to purchase a new or used car?   Click on Sign-Up Now!  to start the process of improving your credit status and your goal of purchasing a new car today.  Click on Bad Credit Car Loans to learn more about how Credit Engineer will help you improve your credit and assist you with obtaining a new or used car.  Sign-Up Now!

Credit Engineer will work hard to improve your credit worthiness. 

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  • Credit Engineer will work hard to improve your credit worthiness. Call Today 703-642-2428