How much does bad credit cost you?

Example 1: Financing an Automobile

If you are making payments on a typical auto loan, you are probably paying between $5,000 and $9,000 more in interest just for having bad credit. See the chart below.

$20,000 car paid over 5 years:
Credit status
Rate
Payment
Cost Of Bad Credit
Perfect 10% $424.94 $0.00
Mildly Damaged 14% $465.37 $4,722.54
Damaged 20% $529.88 $8,593.30

Example 2: Mortgage on a Home

Bad credit in auto financing can really hurt, but it is nothing compared to the cost of bad credit when a home is involved. A typical home can cost between $50,000 and $130,000 more in interest if you are buying the home with bad credit. See the chart below.

$100,000 home paid over 30 years:
Credit status
Rate
Payment
Cost Of Bad Credit
Perfect 7% $655.30 $0.00
Mildly Damaged 9% $804.62 $50,155.24
Damaged 12% $1,028.61 $130,791.63


How quickly can I pay off my debts with good credit?

The impact of a higher rate on a $500 balance, if you make a minimum payment of $10 per month:

Interest rate
16%
19%
21%
23%
Number of months to be rid of debt
83
94
120
168
The interest you will pay over time
$329.42
$431.08
$698.50
$1,174.36
Source: Bankrate.com

What if I cannot afford you right now?

Midwest Credit Law is committed to our clients and their needs. We are here to help and believe everyone deserves a second chance at good credit. If you feel you need additional assistance please call our office and we will work with you.

Why do the Consumer Reporting Agencies Dislike Credit Repair?

Because they lose money! A person with "bad credit" has 70% more inquiries on their file than a person with "good credit", think about that for a minute, every time a credit file is pulled the CRA's make money (in between three and five dollars a piece)! So do they want you to fix your credit, absolutely not! Thankfully we live in a democracy, where everyone is entitled to a fair defense. A courtroom would never stand for a prosecuting attorney to point his finger at you and yell "guilty" and then not prove his case... so why would we stand for the credit reporting agencies to do it? We agree with the law makers and Congress; that the credit reporting agencies must back up what they report about you. The real issue here is not always whether the information is even accurate or not, but is the reporting agency able and willing to prove it. If your defense is properly presented, it is usually more trouble for the credit reporting agencies to verify the information on your report than it is for them to simply delete it. You can appeal to the three reporting agencies yourself, or you have the right to hire someone to do it for you. The choice is up to you, we have helped countless people regain control of their credit situation, and we would like the opportunity to help you.

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