By: Shelly Evans
Are you aware of your personal credit standing? Did you know that having a lower score can cost you a lot more on various aspects of your finances? In this article, we will take a closer look at how much bad credit can literally cost you and what you can do to avoid the extra costs.
Why Credit Score Matters
Many people are aware of the fact that lenders prefer customers with good credit. If you have bad credit, you will be considered as a “high risk customer” and therefore, must pay a higher price to make up for the risk. In fact, the lower your score is, the higher the interest rate and fees are most likely to be.
For instance, let’s say that two people are applying for a personal loan. One has a FICO score of 750 which is considered to be excellent by most lenders while the other has a FICO score of 620 which is considered to be a poor score. Now both of them get an approval but the other one ends up paying more. How so?
Read more How MUCH Does Bad Credit Cost You
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