Yesterday, I tackled the issue of how long negative items remain on your credit report. Today, courtesy of Credit.com, we have an answer to the question of how much bad credit will cost you over a lifetime. We know that a poor credit history (which translates into a low credit score) will make it difficult to borrow as many lenders will deny applicants if they don’t meet their standards. For those with poor credit, who are able to borrow, there is a premium that they pay which is a higher interest rate and also perhaps higher fees.
So, over a lifetime, how much more will someone with a lower credit score pay….drumroll please?
About $160,000. So not paying that traffic ticket or not paying your bills on time has a real consequence!
“According to Credit.com, somebody with top-notch credit would pay $209,590 in interest, while people with bad credit would be on the hook for $369,054, on average.”