$20,000 Vehicle Financed for 5 Years
Home Mortgage Bad credit in auto financing can really hurt, but it is nothing compared to the cost of bad credit when a home is involved. A typical home can cost between $50,000 and $130,000 more in interest if you are buying the home with bad credit.
$100,000 home paid over 30 years:
As you can see, a low score can cost you hundreds of dollars per month. Which is why it is so important to obtain and maintain as high a score as possible.
Amount of available credit
Recent requests for credit
Amount of credit currently being used
Length of credit history
Under the Equal Credit Opportunity Act, credit scoring may not use gender, martial status, national origin, race, or religion as factors.
By paying an outstanding, delinquent debt you will change the account status to “paid collection,” “paid was late,” or “paid was charged off” – which will still stand out as a very negative listing. Furthermore, you will renew the “Date of Last Activity” which can result in a lower score due to the credit scoring algoryhtms.