The True Cost of Bad Credit

I am often asked the question; What does bad credit cost me?”



It is a hard question to answer because of the individual’s circumstances and the fact that lenders are competing fiercely for customers.



But I will give it my best shot.



Mortgages



If you know your credit score you will be in a position to make a pretty good guess at what interest you will be charged on a mortgage. In today’s (March 2006) market, mortgage rates for those in the top or prime category, with a score above 720, will pay around 6.25%.



As your score declines your rates will increase.



For those in the second tier, with a score between 700 and 720, rates will go up View the rest of this article