The Cost of Bad Credit

The Cost of Bad Credit

Many times we are unaware of the costs associated with bad credit and why it hinders those who have bad credit from attaining Great Credit. One of the prime examples given to those who attend our free credit symposiums is that of the bad credit car loan. 

When you have bad credit one of the things most people know is that Car Dealerships will always solicit them for business as unknown to those with Bad Credit is that Car Dealerships make tremendous amounts of money and profit due to those who have bad credit. Bad Credit Car loans are often made with interest rates which are prohibitive. We have seen auto loans made with 28% - 33% yearly interest. These loans are often what are known in the industry as "Upside Down Loans" as the borrower is left owing more than the car is worth as soon as it comes off the lot.

Dealers also will trap borrowers with bad credit into purchasing cars at far higher prices than the car is truly worth as they know those with bad credit have fewer lending options so they MARK UP the vehicle to maximize their profit often entrapping the borrower into a loan which is not advisable nor affordable. These loans will have no grace period and will max out the borrowers cash flow leaving little money to pay off other debts or be able to save money for future plans.

These loans are often made on LEMONS cars which other borrowers with good credit would avoid. These cars end up costing the borrower with unforeseen expenses and debt. When the car breaks down the borrower is so maxed out in the loan they are often left making a choice of getting the car fixed while skipping some other bills which need to be paid. This further destroys their credit worthiness and creates a vicious cycle of indebtedness. Those with Bad Credit find themselves unable to move beyond the situation as all the lending options available continue to keep them from having access to affordable loan products.

Bad Credit is the number one reason Title Pawn,Pay Day Loan, and other predatory lenders exist. These lenders are called predatory lenders as they cater and pursue bad credit clients as they know they can charge higher interest rates, and fees therefor making more profit off those who can least afford it as those with bad credit have fewer options.

The reason I wrote the Bad 2 Great Credit e-book is to assist people who find themselves in a temporary situation of Bad Credit can get themselves out of it so as not to create what should be a temporary situation into one which is permanent.

If you have credit issues please visit www.Bad2GreatCredit.com 

要查看或添加评论,请登录

Raoul Cannon的更多文章

  • HIRING AND STAFFING SOLUTIONS

    HIRING AND STAFFING SOLUTIONS

    We all have experienced or witnessed the staffing issues that have impacted every industry throughout the country…

  • Disaster Loan Application Deadline

    Disaster Loan Application Deadline

    As the year comes to an end so does the Disaster (EIDL) Loan program. December 31, 2021, will be the last day for…

  • 6 Common Reasons for PPP Loan Delays

    6 Common Reasons for PPP Loan Delays

    If you’ve completed a Paycheck Protection Program (PPP) loan application and are waiting for funds, you may be asking…

  • PPP Loan Program

    PPP Loan Program

    The SBA will begin taking PPP loan applications for qualifying businesses. You can apply at your local bank where you…

  • Get Rich Quick Schemes (EIDL/PPP)Fraud

    Get Rich Quick Schemes (EIDL/PPP)Fraud

    There are numerous advertisements on Facebook, Instagram, Linkedin, and Craigslist advertising how one can acquire an…

  • Stimulus Bill Passed

    Stimulus Bill Passed

    The new Stimulus Bill has just passed which means in two weeks another round of SBA funding for PPP and EIDL loans will…

    2 条评论
  • Stimulus Funding Bill & SBA

    Stimulus Funding Bill & SBA

    Congress is close to passing another round of stimulus this time for $908 Billion. This bill contains around $250…

  • Employee Retention

    Employee Retention

    As a small business owner, it is imperative to keep and retain employees so as to ensure the operation of your…

    2 条评论
  • Preparation for Economic Shutdown

    Preparation for Economic Shutdown

    An unfortunate reality is that the spread of Covid-19 continues and is reaching a point of no return in many areas of…

    1 条评论
  • EIDL Loan Reconsideration Process

    EIDL Loan Reconsideration Process

    Unfortunately, many small business owners had their disaster loan applications declined for various reasons. This can…

社区洞察

其他会员也浏览了