In the Red THE REAL COST OF A LOW CREDIT SCORE. WHAT IS AMERICA’S CREDIT SCORE SCALE? Excellent 740-850 Good 680-739 Fair 620-679 Poor 550-619 Bad < 550.

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Presentation transcript:

In the Red THE REAL COST OF A LOW CREDIT SCORE

WHAT IS AMERICA’S CREDIT SCORE SCALE? Excellent Good Fair Poor Bad < 550

HOW MUCH INTEREST WILL A TYPICAL PERSON PAY IN THEIR LIFETIME? A typical person will likely pay $279,002 in interest on credit purchases over the course of his or her life. Based on a 30-year fixed rate loan, and the average price of a home in Florida. Based on a new car every 7 years using financing. Based on a $170 monthly credit card payment with no new charges. A 30 year old with poor credit will pay $250,000 more in interest than one with excellent credit

HOME MORTGAGE % % On a 30 year fixed rate loan of $300,000, that can translate to an extra $102,000 in interest $ a month vs. $

AUTO LOANS % % % On a $20, month auto loan, that will require an additional $8200 in interest $ $ $498.13

CREDIT CARDS Good Credit: Discover “It” Card 0% intro APR and a permanent 10.99% rate No fees and 1% cash back on all purchases Bad Credit: First Premier Bank Credit Card 36% APR, $300 credit limit, $75 annual fee, $95 one-time processing fee and $6.25 monthly service fee

AUTO AND HOMEOWNERS INSURANCE Even with a stellar driving record, auto policies can cost 20-50% more for customers with poor credit. Avg. in FL $1991/year Homeowners with poor credit pay 91% more for their insurance than those with good credit Avg. in FL $1830/year

RENTAL APARTMENTS AND UTILITIES Landlords will ask potential renters for higher security deposits or deny all together Utility companies will demand hundreds of dollars in deposits before turning on the water, phone and electricity Cell service providers require several hundred dollars up front

JOB OPPORTUNITIES Job applicants should expect to have their credit checked In 2013, one in four job applicants had their credit run, and one in seven were advised that they were denied a job due to poor credit

STARTING A BUSINESS Getting a professional license can be hampered by your credit rating. The awarding of a small business loan or franchise could be denied by a low credit score.

While 57% of men say that credit scores play into their dating decisions, a staggering 75% of women said they consider the numerical rating. A LIFE ALONE