THIS MAY BE ONE OF THE MOST IMPORTANT ARTICLES YOU WILL EVER READ!

 

            There are times that life comes at you so fast and so hard it just seems to be overwhelming. Financial situations occur that can cause tremendous stress – emotional, relationships, work, health, etc. We feel trapped by the situation and have a very difficult time sorting out what needs to be done in a logical manner. We have nothing to compare it to and as a result really don’t know where to turn for help or advice. If we are “fortunate” we may only have to face the problem once in our lives. Many times the problems could have been solved quickly if we had only acted right away. We usually visualize the situation as an embarrassment and thus have a tendency to put off seeking help just a little longer in the hope that the situation will work out.

 

            One of the most important things, in our financial lives, is credit. It is also one of the most misunderstood and hardest thing to get a grip on, especially if we experience a few “bumps” or outright set backs. Most people are led by the media or by what the “banks” tell us. A friend once swore that there were “no intelligent life forms” in the banking system. Now to be fair to the banks, they do lend money, and we must keep in mind that this is their depositor’s or investor’s funds and they are not a charity. They want paid back. But as mentioned above, life happens. Sometimes it doesn’t work out the way it was supposed to and we end up with late payments, defaults, repossessions, liens, or even bankruptcy.

 

            Even one late payment can blemish our credit rating if not addressed correctly. A couple of late or missed payments can obliterate what was once a spotless credit history. Then the nightmare really begins. There are three major credit reporting agencies (CRAs). Whenever you apply for any type of credit, and even for most insurance companies, the first thing that the lender will look at is the average of the three credit agencies’ reports. They don’t see that the problem was temporary or beyond your control. They just see the late pays and what the current credit score is. This means that they will either deny you additional credit for a period of time or raise your interest rates to a much higher rate because you are now a “greater risk”. Even though the problems are behind you they will want to make you pay higher rates.

 

            You may think owning a home will be impossible in the future with all the damage your credit has sustained. You don’t see how you will get financing even for a car. Interest rates will be so high you don’t think you’ll ever be able to pay anything off. Don’t be a victim of high interest rates from banks. Don’t let banks take all your hard earned money with sky high interest rates. 

 

            For example, here are just a few of the things that could be removed from your credit record: Late payments, collection accounts, bankruptcies, tax liens, repossessions, judgments, foreclosures, charge offs and garnishments. In less than a year most if not all of these can be removed and you can enjoy the benefits of A+ credit again.

 

            Your financial future is not as bleak as it may seem. There is a choice you can make to get back on your feet again. You can call us now and take action. You can have your buying power back. Your choices do not have to be as limited as you may think. You can own a home again, drive a new car, get better insurance rates on it, re-establish your credit cards. Don’t get caught up thinking that you will have to throw money away because of a mistaken belief that you can’t get a new mortgage, a car or credit card at a good rate.

 

            Have you recently filed for or been dismissed from bankruptcy? Filing bankruptcy is not an easy or desirable choice in life. However, medical bills, job loss, adjustable rate mortgages, rising fuel bills, increased taxes, skyrocketing gasoline prices, the rising cost of day to day living, these are all things that you have no control over. You should not have to deal with the credit damage that comes with it. You worked hard to protect your credit, now is your chance to get it back close to or better than where it was when life blindsided you. Don’t pay those ridiculous high interest rates longer than you have to. We are offering you another chance at the credit you deserve.

 

            We have listed below some examples of how your credit scores can affect how many of your hard earned dollars could end up in your lender’s pocket instead of yours. Lets say you would like to purchase a new home. For illustration purposes we listed a typical $120,000.00 mortgage and a $190,000.00 mortgage. The interest rates are typical of what you could expect to pay based on the status of your credit report. As you can clearly see, there is a significant savings in just a point or two in interest rate.

 

$120,000 home paid over 30 years

Credit Status	Rate	Payment	Interest Paid
Great	7%	$798	$167,410
Fair	9%	$966	$227,596
Ugly	13%	$1,327	$357,878

 

 

$190,000 home paid over 30 years

Credit Status	Rate	Payment	Interest Paid
Great	7%	$1,264	$265,066
Fair	9%	$1,529	$360,361
Ugly	13%	$2,120	$566,640

Now imagine what you could do with the difference between a Great Status versus an Ugly Status. $190,468 in savings on a $120,000 house would let you buy a new luxury car every 3 years for the next 25 years, if you wanted to, and pay cash for them.

 

Looking at all the extra interest on a $190,000 house, you could conceivably buy 2 more homes with all the interest you would pay with ugly credit. Why let the banks take even more from you than they already have. Spend the money on yourself or your family, or save it for something later on down the road. Just don’t hand over the money you have worked so hard for.

 

            What about a car loan? It would look something like this:

 

$23,000 vehicle financed for 5 years

Credit Status	Rate	Payment	Interest Paid
Great	3%	$413	$1,796
Fair	9%	$477	$5,646
Ugly	18%	$584	$12,042

 

            Just because car dealers advertise that you can buy a car with poor credit, doesn’t mean that you should. You will pay for it, big time, in the long run. Why let the banks or finance companies take more than what’s fair? An insider industry secret is that your car and life insurance is affected by your credit rating as well. Your insurance agent will never tell you this unless you ask.  Most people don’t even realize it’s a factor. So, if you are convinced now that having bad credit will only cost you more money in the future, click on the banner below to contact Care One Credit and let them help you pay back the debt you have.