SubscribeThis is the difference between borrowing 100k at 7% (excellent credit) versus 12% (very damaged credit). The 130k is the overall EXTRA interest you will pay on a 30-year home loan by having bad credit.
The 7% interest rate is hypothetical of course as rates fluctuate all the time. The point is there can easily be a 5% point gap in interest rate you receive depending on your credit score.
Damaged Credit will Haunt You
If you are considering getting a new mortgage loan, an auto loan, HELOC (Home equity line of credit), or even refinancing an adjustable rate mortgage, scrutinize your bill paying habits - NOW
Why?
Because the credit bureaus are doing just that.
Just a few financial slip-ups or oversights on your part can result in damaged credit costing you big money for a long time. A few late payments can sink your credit score for 7 years! Plan ahead!
How Long Will Damaged Credit Stay on My Credit Report?
Credit Late payments: 30- 180 day late payments - Expect these to damage your your credit history for 7 years .
Collection accounts: Starting on the delinquency date, a collection will stay on your credit record for 7 years. Once you pay it off the notation will read “paid in full”.
Bankruptcy: Chapter 7, 11 and 12 will remain a sore spot on your credit report for 10 long years. Filing chapter 13 only stays on your credit report for 7 years.
Tax Liens: If you owe back taxes or liens expect these to remain on your credit report for 15 years. These include federal, city, county, and state tax liens.
Paid Tax Liens: Once you pay the lien, expect it to be on your credit report for 7 years.
Closed accounts - with delinquency: If you haven’t paid off an account that has been closed it will remain on your credit report for 7 years from the time you close the account. However the delinquency notation will only appear for 7 years regardless of whether the account is open or closed.
Closed accounts - with positive balance: These stay on your credit report for 10 years. Inquiries: most inquiries into your credit history stay on your credit report for 2 years.
Think about Your Credit Report in Advance
If you are planning a major purchase in 3 years like a new car or home, now is the time to keep your bill paying habits under the microscope to prevent damaged credit.
The worst surprise you can get is sitting with the loan officer who runs your credit report which reveals several 30-60 or 90-day late payments.
Surprise!
You just raised your interest rate and increased your monthly payment by hundreds of dollars.
Tip To Avoid Damaged Credit - Never Miss A Payment
If you are having trouble paying your monthly bills - especially mortgage, auto, student loans or credit cards why not consider a quick cash or payday advance loan?
Believe it or not, the $30-$50 you pay to borrow a couple hundred dollars is a much better option than missing your payments thereby avoiding damaged credit.
The cost of borrowing short-term funds at a high rate is a MUCH better financial decision, which avoids the long term (7 years) pain of high interest rates caused by just a few missed payments.
You’ll save thousands of dollars by not damaging your credit over the long haul so do what ever you can to not miss any payments - even if it means borrowing short-term funds.
Find a trusted quick cash loan provider, online. Understand how to choose a reputable online payday or quick cash loan provider - save your identity!
Article Author :Leslie_Collins
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Tags: bad credit, Bankruptcy, cards, credit cards, credit score, high interest rates, home loan, Loans, mortgage loan, Payday Advance Loan, student loan, tax
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