Mar 21, 2008
Is Credit Repair Affordable?
Let’s play a game. It’s called "Which is More Expensive?"
Here’s how it works: I give you 2 things and you tell me which one of the 2 is more expensive. Ready? Go!
1. Buying your favorite magazine every month at Barnes & Nobles.
2. Getting a 1 year subscription to that same magazine.
Did you answer #1? If you did, you’d be correct. #1 is obviously more expensive. Getting a subscription can save you lots of money.
One of my favorite magazines is Men’s Health. It’s $4.50 an issue at the newsstand. A 1 year subscription (10 issues) is $19.97.
Let’s do some real quick math:
10 x $4.50 = $45.00
$45.00 - $19.97 = $25.03
That means if I get the subscription I save $25.03 a year!
Ok, that was a no-brainer. Here’s another one:
1. Having a credit repair service fix your credit for about $500. Then, enjoying a low interest rate of 6% on a 30 year mortgage.
2. Save the $500 by not repairing your credit. Then, get a sub prime mortgage with an interest rate of 8%. (You may pay much higher, but let’s just use 8% as an example.)
#2 would be much more expensive. Hopefully you chose to hire a credit repair service. If you’re purchasing a $100,000 house and paying 6% interest; according to my mortgage calculator you're monthly payment would be $599.55. If you purchase the same home at an 8% rate you're monthly payment would be $733.76.
Let’s do some real quick math.
$733.76 - $599.55 = $134.21
You’d be paying $134.21 more every month. Multiply that times 12 and you’re paying $1610.52 more per year.
Multiply that again times 30 for the life of your mortgage and now you’re paying $48,315.60 more than your neighbor paid after 30 years for the EXACT SAME HOUSE.
So, which is smarter? All of the sudden paying $500 to get your credit repaired seems quite affordable, doesn't it?
By playing my little game, hopefully you were able to see my point. By even paying .25% more in interest on such a major purchase, you're really throwing a lot of money away. When you up that by 2-4 percentage points, it's disastrous.
This is just one example of what bad credit will cost you. Don’t forget about cars, credit cards, cell phones, jobs, insurance rates and everything else.
I hear it everyday, "I can’t afford that kind of money to get my credit repaired!"
Here's the truth: If you have bad credit or even mediocre credit, you can’t afford NOT to get your credit repaired.
STOP paying higher interest rates and start reaping the benefits of a good credit score. For a one time set up fee of $99 and as low as $39/month, Lexington Law Firm will work to increase your credit score by removing negative items from your credit history.
Here’s how it works: I give you 2 things and you tell me which one of the 2 is more expensive. Ready? Go!
1. Buying your favorite magazine every month at Barnes & Nobles.
2. Getting a 1 year subscription to that same magazine.
Did you answer #1? If you did, you’d be correct. #1 is obviously more expensive. Getting a subscription can save you lots of money.
One of my favorite magazines is Men’s Health. It’s $4.50 an issue at the newsstand. A 1 year subscription (10 issues) is $19.97.
Let’s do some real quick math:
10 x $4.50 = $45.00
$45.00 - $19.97 = $25.03
That means if I get the subscription I save $25.03 a year!
Ok, that was a no-brainer. Here’s another one:
1. Having a credit repair service fix your credit for about $500. Then, enjoying a low interest rate of 6% on a 30 year mortgage.
2. Save the $500 by not repairing your credit. Then, get a sub prime mortgage with an interest rate of 8%. (You may pay much higher, but let’s just use 8% as an example.)
#2 would be much more expensive. Hopefully you chose to hire a credit repair service. If you’re purchasing a $100,000 house and paying 6% interest; according to my mortgage calculator you're monthly payment would be $599.55. If you purchase the same home at an 8% rate you're monthly payment would be $733.76.
Let’s do some real quick math.
$733.76 - $599.55 = $134.21
You’d be paying $134.21 more every month. Multiply that times 12 and you’re paying $1610.52 more per year.
Multiply that again times 30 for the life of your mortgage and now you’re paying $48,315.60 more than your neighbor paid after 30 years for the EXACT SAME HOUSE.
So, which is smarter? All of the sudden paying $500 to get your credit repaired seems quite affordable, doesn't it?
By playing my little game, hopefully you were able to see my point. By even paying .25% more in interest on such a major purchase, you're really throwing a lot of money away. When you up that by 2-4 percentage points, it's disastrous.
This is just one example of what bad credit will cost you. Don’t forget about cars, credit cards, cell phones, jobs, insurance rates and everything else.
I hear it everyday, "I can’t afford that kind of money to get my credit repaired!"
Here's the truth: If you have bad credit or even mediocre credit, you can’t afford NOT to get your credit repaired.
STOP paying higher interest rates and start reaping the benefits of a good credit score. For a one time set up fee of $99 and as low as $39/month, Lexington Law Firm will work to increase your credit score by removing negative items from your credit history.
Labels: affordable credit repair, credit repair, credit repair service, credit report repair, personal finance
posted by Chane Steiner at 12:54 AM | 
