Bad credit DOES cost you

 

Buying a car
If you are making payments on a car, you are probably paying between $5,000 and $9,000 more in interest just for having bad credit. This added interest shows up every month in a higher payment. Check it out.

$20,000 car paid over 5 years:

Your credit is:	Rate	Payment	Bad Credit Costs
Unblemished	10%	$424.94	$0.00
Lousy	14%	$465.37	$4,722.54
The Pits!	20%	$529.88	$8,593.30

Buying a house
Buying a car with bad credit can be painful, but it is nothing compared to the cost of bad credit when a home is involved. Your home can cost between $50,000 and $130,000 more in interest if you are buying the home with bad credit, see the example below.

$100,000 home paid over 30 years:

Credit Cards
Most of the time you cannot even get an unsecured credit card with bad credit. If you do, you are generally expected to pay a high monthly payment or initial fee. Furthermore, the limits are typically low and the card issuer often asks for a cash deposit (Providian & BankFirst are good esxamples).