Bad credit? No credit? No problem. You hear lenders saying it all the time but who's really paying the price? You! Sub prime lenders charge higher interest rates, usually three percentage points above what prime borrowers with good credit pay plus thousands of dollars in fees. Ultimately this vicious cycle of accepting sub prime offers can result in catastrophic debt overload which then leads to bad marks on a credit report or even bankruptcy.

It is estimated that approximately 60 million Americans are negatively affected by derogatory information contained in their credit reports- that's a staggering figure. The cost of poor credit goes much deeper than just trying to qualify for a small computer loan or secured credit card. Your credit reports reflect your character! Lenders, landlords, employers and even insurance companies view your credit worthiness by how well you manage and pay your debts.

Credit is a cost effective weapon to fight poverty and it serves as a vehicle in the overall well-being of the socioeconomic. Managing credit correctly can ensure financial well-being. Continual late payments, inaccuracies and errors reflect negatively on your character and limit your financial options. While we can see the importance of good credit, maybe you have not given much thought to how much your bad credit is costing you. You are being punished for your lacking credit record in almost everything you do. Your credit score determines your ability to borrow.

Consider this. Your credit reports decide just how much you will be charged in interest on any given loan, if you can even get a loan. Below, we have given you a few examples of the cost of your bad credit and how much the industry is charging you. Can you afford to continue on down this expensive road?

Car Financing
Car dealers can use errors on your credit report to charge you higher interest rates! You could be one of the more than 40 million people who are paying subprime rates for car financing. If your credit is impaired, you are paying much more for your loan then others. Why continue to see others get the preferred rates?

Home Loans
While the impact of expensive auto financing can be detrimental, it is nothing compared to how much you can be paying for bad credit with a home loan. If your credit score falls below 640, you could be paying too much for a home loan or refinance. Not even considering the loan amount but only the savings based on your monthly payment, you can certainly visualize the effects of bad credit and just how unattainable it makes ever owning your own home! The difference in monthly payment and total interest paid is dramatic. That's over $91,000.00 in additional interest!

The bottom line?
The cost of bad credit is high, no doubt - but the cost of repairing your credit can also be very expensive and many times you achieve little or no results. Credit repair is one of the most popular search terms on the Internet and consumers' continue to search for quick fixes. If you can learn anything from this page, understand there are NO quick fixes. Yes it is possible to repair your credit- millions do but don't have such high expectations that you're sorely disappointed in the end.

Find a Certified Debt Arbitrator on our website
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-You have the right to receive a copy of your credit report. The copy of your report must contain all of the information in your file at the time of your request.

-You have the right to know the name of anyone who received your credit report in the last year for most purposes or in the last two years for employment purposes.

-Any company that denies your application must supply the name and address of the CRA they contacted, provided the denial was based on information given by the CRA.

-You have the right to a free copy of your credit report when your application is denied because of information supplied by the CRA. Your request must be made within 60 days of receiving your denial notice.

-If you contest the completeness or accuracy of information in your report, you should file a dispute with the CRA and with the company that furnished the information to the CRA. Both the CRA and the furnisher of information are legally obligated to reinvestigate your dispute.

-You have a right to add a summary explanation to your credit report if your dispute is not resolved to your satisfaction.

Visit the IAPDA website to learn about a career in Debt Management

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Everyone these days seems to have a problem with mounting debts. The average person is well below the bad credit limit and is in desperate need to fix it. The only problem is that many people are convinced that there is nothing that they can do about it that isn't just going to put them back into deeper debt. Getting your good credit back is best is you can avoid going through bankruptcy to get it. A lot of people believe that if they want to get out of debt, all they have to do is declare bankruptcy and things will be ok from then on.

The problem with that theory is that things are never that easy. Although many companies try to accommodate those who have been through a bankruptcy, many of them will charge you higher interest rates on your credit and if you miss any payments or are late with payments you are also subjected to bigger penalties. In the end, you could wind up back in debt. There is a limit to how many times that you could declare bankruptcy legally. After that, you have to relatively hard just to avoid being charged with fraud.

Debts can ruin your life today and in the future. If you are in debt right now, you have options other than declaring bankruptcy. You can see a credit councilor or a debt consolidator. They will help you to lower your monthly payments to a level that you can afford. Some are not for profit who does not charge you for this service, and others only have a small fee. You can also go to a credit union which is a bank that takes care of all of your income, expenses and bills for you and places some in savings for you so that you can avoid doing this again. If you would like to find a good credit councilor, consolidator or credit union, you can go online and find just any of them that you could want. It only takes a few minutes to sign up online and it will be very much worth it in the end.

Interested in a career in Debt Management?
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