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The Real cost of Bad Credit

January 23rd, 2015 Bad Credit Blog

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?