Ever wonder how much more a bad credit rating costs per month? Probably not, if you have good credit. Here are a few examples of what a subprime rating can cost in certain situations, according to Money Magazine.
- $25,000 auto loan…Excellent credit: 4.2%…sub-prime credit: 11.3%. That is an extra $81 per month.
- $50,000 15 year home equity loan…Excellent credit: 7.1%…subprime credit: 11.4%. An extra $130 per month.
- $10,000 balance on a single credit card…Excellent credit: 7.9%…subprime credit: 29%. An additional $176 per month.
- $200,000 fixed rate, 30 yr mortgage…Excellent credit: 3.8%…subprime credit: 5.4%. That is an extra $190 per month.
Do a little math and you can see that bad credit can cost you $577 more per month just to pay for the basic needs of life (minus the credit card, of course).