Suche Musiker/ Band » m. Will you end up being like Ted and

Most people know having a low credit score costs more than having a high one. However air jordan 6 gatorade green mens shoes , what few consumers ever learn is just how expensive their low credit score really is. Today...

* We WON'T talk about the fact a low credit score could cost you a good job (because over 50% of employers are now running credit checks on job applicants).

* We WON'T talk about the fact you could end up paying up to 40% more for your auto insurance (because most insurance companies now check credit when quoting premiums).

* We WON'T talk about the fact most utility companies for Electric, Gas, Water or Cable now demand a deposit before services can be turned on because of a low credit score.

and

* We WON'T talk about the other FIVE ways a low credit score will cost you money and make life more difficult each month.

No... today we're going to talk about the one way a low credit score will cost you a fortune and why the banks and credit bureaus love your low credit score (if you choose to do nothing about it). This one element of credit if not addressed will cost the average American over $100,000. Even worse, it can cost the average mortgage broker or loan officer over $100 cheap air jordan 6 gatorade green mens ,000... each year. The saddest part of all? The banks and credit bureaus win if you choose to do nothing because its' your loss and your loss IS their gain. Let us explain... We all know the largest purchase a consumer will make in their lifetime is their home. As a result, the greatest amount of interest ever paid in a consumers' lifetime will be on the loan, for that home. Again, most consumers know with a low credit score they're going to pay a higher interest rate on that loan. However, few consumers ever learn the REAL amount that increased interest ends up costing them over the life of the loan. After all air jordan 6 gatorade green mens for sale , the typical American Consumer now lives in a world where their only focus when financing anything, is all about,

The MONTHLY Payment.

This type of thinking feels good in the short run but becomes expensive in the long run. Let's look at some factual numbers as to why with the story of Bill and Ted. Bill and Ted both bought homes in the same neighborhood, on the same street and for the same price. Bill had a high credit score and borrowed $180,000 to purchase a 4 bedroom 3 bath home. Because of his high credit score he got a 30 year fixed rate loan at 5.5% interest. Here's what Bills loan looked like:

His loan amount was $180 air jordan 6 gatorade green mens ,000 His interest rate was 5.5% This gave Bill a monthly payment of $1022.02 His payments over 30 years totaled $367,927.00 His interest paid over the term totaled $187,927.00 (Of his $367,927 in total payments... $187,927 went to interest). Bill paid for his house twice after interest jordan 6 gatorade green mens retail , but don't cringe until we're done talking about Ted.

Ted had a low credit score and borrowed $180,000 to purchase a 4 bedroom 3 bath home on the same street as Bill. He got a 30 year fixed loan as well, but because of his low credit score his interest rate was 8.0% instead of Bills 5.5%. Here's what Teds loan for the same $180,000 loan looked like:

Teds loan amount was $180,000 His interest rate was 8.0% This gave Ted a monthly payment of $1320.78 (about $300 more per month than Bills) Teds payments over 30 years totaled $475 jordan 6 gatorade green suede mens ,479.00 Teds interest paid over the term totaled $295,479.00 The problem is NOT that Ted paid over $295,000 in interest on his loan of $180,000. The real issue is that Ted paid $108,000 MORE in interest than Bill just because his credit score was lower!

Teds total home loan interest paid = $295 jordan 6s gatorade green mens ,479.00 Bills total home loan interest paid = $187,927.00 Difference = $107,552.00 The harsh reality is that Ted's credit score cost him $107,000... But that's not the real tragedy of the story... The worst part is Bill and Ted were brothers and both had bad credit at the same time (years before buying their homes). The only difference was Bill took action to fix his credit, while Ted didn't. Now jordan 6 gatorade green mens shoes , ask yourself "Who got Teds' $107,000 in extra interest payments?" ANSWER: The Bank. And that's why banks love low credit scores. Customers like Ted are far more profitable than customers like his brother Bill. All because a lower credit score means they have to pay a higher interest rate and most people like Ted don't see the big picture, instead they only focus on...

The MONTHLY Payment they can afford.

Banks love people like Ted because they make millions off them. Will you end up being like Ted and throwing away over $100,000 in interest payments on your home? Hopefully not... Now that we've covered why banks love low credit scores... let's talk about why Credit Bureaus love them just as much (if not more). "Why Credit Bureaus Love Low Credit Scores..." If you ask 10 Americans on the street... "How do Credit Bureaus make money?" You will invariable get the same answer all 10 times: "By Selling Credit Reports of Course!" While this answer is true, it's not... the whole truth. The reality is that Credit Bureaus make the bulk of their money selling personal information cheap jordan 6 gatorade green mens , not running credit reports. In the example of Bill and Ted one doesn't have to be smart to realize that Ted is a more profitable customer to the bank th