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What can a bad credit cost you?
By: Debt Samaritans
Your credit score is not merely a three digit number; it is a snapshot of your creditworthiness. It can affect everything from whether you qualify for a loan, an apartment lease to whether an employer hires you or not. If you are marked as having bad credit, you will be having a real tough time in obtaining loans and even if you do, pay a higher interest rate than someone with good credit. So, settle in and check out the consequences of having a bad credit.
Buying a home with bad credit
In case of a mortgage loan, the cost of bad credit is the most evident one. A poor credit can really hurt your dream of purchasing that dream house. A bad credit doesn’t mean that you would be turned down for a loan but you will have to certainly pay a higher price for the dream house. For instance, if you have a credit score of 710 and above then you will have lenders running after you to offer you loan at favorable interest. A score in the range of 620-700 can also fetch you some good deals on mortgages. But if your score is in the range of 560 to 619 then it would cost you some hundred or thousands of extra dollars to get approved for the loan. Given below is a table that will illustrate how your score can influence the interest rate on a $200,000 mortgage paid over 30 years.
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