The Cost of Bad Credit

EEEnigma — Mon, 11 May 2009 18:39:00 +0000

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

Tips Towards Financial Freedom

EEEnigma — Thu, 07 May 2009 18:31:00 +0000

This series of posts within the Credit Chronicle will be focused on providing you with all the latest info on personal finance!

Financial planning is not an easy or pleasant task; the process can be an expensive and time consuming one. However, we all have goals that require some measure of financial planning. Whether your goals are small or large, the best way to begin gaining control of your finances is to take the first step – get active!

Simplifi is an online personal finance planning tool that can help you take that first step. With Simplifi you can see what you own and what you owe, plus your goals and spending plan, all together in an easy-to-use format. All your information works together so you can see how changes to what you spend or save can impact your ability to reach your goals. Simplifi is a SEC Registered Investment Advisor (RIA), so they know what they’re doing. Best of all, Simplifi is FREE!

Check out their website: http://www.simplifi.net/

For more information on credit enhancement: http://positive-credit.com/

The Credit Chronicle » Credit

The Cost of Bad Credit

Tips Towards Financial Freedom