The Real Cost of Bad Credit
Bad credit can cost you in more ways than you thought. Here are some ways bad credit can drain your wallet
- Fees: Often times fees are added to things simply based on your credit rating such as origination fees on auto loans, credit card annual fees, bank fees, late payment fees.
- Higher interest rates: The lower your credit score, the higher the interest rate you have to pay. If that wasn’t enough, the policy of universal default states that if you miss a payment with one company, all your lenders can hike up your interest rate, even though you’re still paying the others on time and as agreed.
- Lost employment opportunities: Businesses more and more are checking credit before offering you a position with their company. Especially in higher paying jobs, so if you’re looking forward to climbing the corporate ladder then beware that a bad credit score might hold you back.
- Higher insurance premiums: Insurance companies run a credit check when determining your premium, so bad credit will cost you more every month for your insurance payment.
It is estimated that the average consumer pays over a quarter of a million dollars more in their lifetime by having bad credit. Isn’t it time to get serious about fixing yours?