It’s surprising how many people have the following attitude towards credit: “what’s the big deal about having a great credit score? As long as I qualify for loans and mortgages, my score is good enough.”

They couldn’t be more wrong. Your credit score can affect everything from whether you qualify for a mortgage to whether an employer hires you – even the military conducts credit checks on aspirant enlisters.

For most people, a mortgage loan is where they will most reap the benefit of an improved score. This is because mortgage payments typically span over much longer periods of time.

Below is a chart that outlines typical APRs given at various levels credit-worthiness for a 30 year fixed APR mortgage loan for $400,000. The average monthly payment and total amount paid are also listed. Note that the cost difference between excellent credit and poor credit is about $200,000!

The cost of bad credit is also felt on a monthly basis. The graph below displays the monthly difference in mortgage payments:

On a monthly basis, the mortgage holder with a poor credit score actually pays over 500 dollars more than the mortgage holder with excellent credit! Can you afford to have poor credit?

For More information on credit enhancement: www.positive-credit.com