How Much Does Bad Credit REALLY Cost?

Mortgage and Lending with Cardinal Financial Company, Limited Partnership NMLS 365858

PhotobucketI was speaking to a friend of mine that is trying to jumpstart his business.  He's run into some rough times and given the current state of the economy, I know that things are hard for a lot of people.  However, this friend of mine, complains that he never has any money, he can't pay his bills, and that life, in general, is tough.  I can empathize.  Being in sales, the slow periods can be brutal.  He's complaining that he can't acquire the financing he needs to get some new equipment and hire additional help to grow his business.  So, I segue into what I do:  Credit Repair.  Before I can get started, he tells me, "James, I can't afford it."  This is a guy that spends about $50 a night drinking his sorrows away (granted, I like the occasional greasy burger and draft myself after a game of pool) and he's a poker buddy of mine that I've seen drop wads of cash onto the felt.  I'm not judging my friend, mind you, but realize that like many people, the COST of something (even if they don't know what the actual cost is) hinders him, but doesn't even think about the money he's throwing away on frivolous diversions and high interest debt.  As you can see on the graphic to the right, I've broken down the cost of bad credit.  While this may not pertain to everyone, it's a good example of how much money bad credit costs an individual.


PhotobucketBesides the high cost of extremely high interest rates, bad credit takes more money out of your wallet:

  • Cell phone and home phone deposits and fees
  • Higher insurance premiums for auto and home insurance
  • Additional set up fees and deposits for gas, water, and electric service
  • Having to utilize payday loans for emergency reasons rather than having an emergency fund saved up or a credit card set aside for these purposes
  • Inability to open up a Free Checking Account and resorting to a DEBIT card that you have to pay a monthly fee or a per transaction fee
  • Inability to obtain financing whatsoever without collateral or money down

There's plenty of reasons why people end up with bad credit.  There's no reason why people have to continue to live with bad credit.  We can help restore your credit, help you create a budget, educate you on how to maintain and improve your credit, and help you reestablish yourself so you can enjoy the benefits of living with good credit.  While our pricing is determined on a case by case scenario, one guarantee I can make is that everyday you do nothing to improve your situation will cost you more than my program in the long run.  The savings you will get in your first year alone will more than pay for your investment to make this positive change in your life.  Plus with a money back guarantee, what do you have to lose but bad credit.  After all, it's your hard earned money we're talking about.  Maybe I'm a little crazy, but it just seems to make sense for you to keep most of it.



Comments (13)

Justin Williams
Independent - Virginia Beach, VA
Loan Officer
Great Recap James, it all boils down to the roots which is your credit in the first place that can chain react to many things.  Another great advice post!
May 03, 2008 10:32 AM
Bob & Carolin Benjamin
Benjamin Realty LLC - Gold Canyon, AZ
East Phoenix Arizona Homes
Good post a about credit. It is important that people self monitor their situation before it gets out of hand.
May 03, 2008 10:46 AM
Ellie Viray
Deasy Penner Podley - Pasadena, CA
Realtor, GRI
Thank you for the information on the credit. I do have one person in mind that can use a credit overhaul.
May 03, 2008 10:47 AM
Courtney Fontenot
Alpha Prosperity Management - Missouri City, TX
NAR Certified REPA, REW
Good information. The good and bad interest rates certainly make a difference.
May 05, 2008 11:38 AM
James Jeter
Cardinal Financial Company, Limited Partnership - Carrollton, TX
James Jeter

Justin - Thanks!  In this business, that is the foundation.

Bob & Carolin - I agree.  Sometimes, though, it snowballs out of our control.

Ellie - Glad I could help!

Courtney - They sure do!

May 05, 2008 02:17 PM
Tina Maraj
RE/MAX One - Fullerton, CA
Celebrating 30 Years of Real Estate Sales
I heard that you can't even get home delivery from Arrowhead water with bad credit.
May 06, 2008 03:57 PM
James Jeter
Cardinal Financial Company, Limited Partnership - Carrollton, TX
James Jeter
Wow!  And I thought Evian was expensive!  Haha!  Thanks for the note!
May 06, 2008 05:28 PM
Roberta LaRocca
Simply Vegas Real Estate - Las Vegas, NV
REALTOR®, Broker, Salesperson, NV. Lic BS.507
James, There are some situations where you cannot avoid bad credit, but I know a lot of people who just don't care about their credit.  It's hard for me to understand that line of thinking!
May 06, 2008 05:38 PM
Sam Sams
Richardson, TX


It is the same concept with a car. If a car is broke does it really matter if it has a flat tire and a broken windshield? Either way you are paying cash to ride the bus. If you fix the car you will probably save money and be able to go more places but cash in hand to these people is king. The problem is the absence of the "Line of Thinking".

May 07, 2008 02:12 AM
James Jeter
Cardinal Financial Company, Limited Partnership - Carrollton, TX
James Jeter

Robert - You're preaching to the choir brother!  It comes to a lack of knowledge.  Like anything else, everything is taught, including respecting credit and the impact it has on you.  Sometimes, even the most knowledgable people run into hard times, and they give up.  As soon as they try to make up, things have gotten way out of hand and they just sink lower and lower.  Are there people who don't care?  Sure.  But trust me, they are the exception, not the rule.

May 07, 2008 02:51 AM
James Jeter
Cardinal Financial Company, Limited Partnership - Carrollton, TX
James Jeter
Darrell - Thanks for the analogy.
May 07, 2008 02:52 AM
Shiela Nacasi
Bad Credit Resources - Jackson Mountain, NV

Thanks for sharing this. This post is really helpful.


Jul 10, 2008 07:38 PM
James Jeter
Cardinal Financial Company, Limited Partnership - Carrollton, TX
James Jeter

Glad I could help!

Jul 11, 2008 07:36 PM