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