Your credit score is your most important financial asset. And your simple 3-digit credit score can rapidly become the most crucial numbers in your life. Let’s take a moment to truly break down the cost of bad credit. Using some simple life examples, we’d like to show you just how important your credit rating truly is.

We feel that a picture is worth a thousand words. 
 
 
 
YOUR HOME

Your home, one of your greatest investments, can illustrate the enormous expense associated with a poor credit rating. Example: A 30 year mortgage, with a loan amount of $250,000 on your Owner Occupied property with a loan to value ratio of 80%.

 
Rating Credit Score Rate Payment Monthly Difference Added Cost over Life of the Loan
Excellent 720-850 5.5% $1,420 - -
Fair 620-680 7.0% $1,663 $243 $87,480
Poor 500-580 9.5% $2,102 $682 $245,520
 
YOUR CAR

The same applies for your automobile. A 3 year auto loan, with a balance of $15,000 and a fixed rate for the life of the loan, can also have some very drastic payment differences:
 
Rating Credit Score Rate Payment Monthly Difference Added Cost over Life of the Loan
Excellent 720-850 5% $450 - -
Fair 620-680 11% $492 $42 $1,512
Poor 500-580 19% $550 $100 $3,600
 
YOUR CREDIT CARDS

Even a credit card balance of $5,000, with a repayment schedule of 5 years and fixed APR’s can show you ways to save:
 
Rating Credit Score Rate Paid Off In Total Amount Repaid Added Cost over Life of the Loan
Excellent 720-850 4% 5 years $5,525 -
Fair 620-680 12% 5 years $6,675 $1,150
Poor 500-580 23% 5 years $8,458 $2,933
 

We just showed you three simple ways to save THOUSANDS of dollars. In this scenario, raising the credit score just 140 points from Poor to Excellent could have saved well over $250,000 in the long run! These numbers can be hard to ignore. By investing in your credit restoration you could be saving you and your family thousands of dollars. Imagine the differences this could make in your life.
 
 
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