What Is Considered A Bad Credit Score?
A bad credit score can wreak havoc in many areas
of your life. If you have a bad credit score you aren’t likely to qualify for new credit
or loans. Even if you don’t like using credit cards you will usually need one for things
like: reserving a hotel room, renting a car,setting up utilities, getting a cell phone
account an so forth. And a bad credit score not only interferes with you getting a loan
or a credit card it can also prevent you from: Getting a job. Many employers base their final decision
on the applicant’s credit report. The status of your credit report gives the employer an
idea of how dependable you are likely to be. Getting an apartment. Most landlords do credit
checks to see if potential tenants are financially responsible. Getting auto or home owners insurance.
Insurance brokers know that statistically more claims are filed by policy holders who
have poor credit. If you have poor credit,you will be charged a higher premium or denied
So what is considered a bad credit score in 2013?
Generally speaking, anything below
620 is a bad credit score. You are going to have a very difficult time getting anyone
to lend you money. If you happen to qualify for a loan, your interest rate could be as
high as 36%. And on the off-chance you get a credit card, your interest rate will be
in the mid to high 20% and you’ll most likely be charged a security deposit or high acquisition
fee. You will end up paying much more for purchases due to exorbitant interest and unnecessary
fees. You may also be charged more for insurance rates and some employers may even deny you
a job. A credit score between 620 and 680 is considered sub-prime; not necessarily bad,
but not good either. Here you are getting into dangerous territory and will likely pay
much higher interest rates, pay higher fees and have lower credit limits. Some lenders
and credit card issuers may even deny you altogether.
How much is your bad credit score
Example 1 — Auto loan: $30,000 car paid over five years: This shows someone with bad credit paying six thousand dollars more than someone with good credit! Example 2 — Home mortgage paid over 30 years: This shows a person with bad credit is paying a quarter million dollars more than someone with good credit, holy crap! You can see how having a bad credit score negatively impacts your life. Do yourself a huge favor and work on repairing your credit and raising your credit scores; life will become so much better– and cheaper!
We hope this article on what is a bad credit score was useful. Gives us a call today at 877-649-6322 and one of our associates will answer any questions you may have on how to repair your bad credit score. Much luck and success!