YOU SAVE MONEY WHEN YOU INCREASE YOUR CREDIT SCORE
May 27, 2016
Creditors use your credit score to decide if they want to lend you money and what interest rate they will charge you. People with higher credit scores get lower interest rates for their loans, and lower interest rates mean big savings.
Let’s suppose that Jennifer has a credit score of 625. She can probably get a mortgage with this credit score, but she will have a higher interest rate. If Jennifer’s interest rate on a $100,000 mortgage is 5.62%, she will pay $575 a month and she will pay a total of more than $207,000 for her mortgage.
If Jennifer can increase her credit score to 720, she may be able to get the same mortgage with a 3.89% interest rate. At that rate, her monthly payment will be $471 and the total payment will be about $169,600.
By increasing her credit score, Jennifer will save more than $100 every month and more than $37,000 total.
Many people think that bankruptcy is a credit score death sentence, but that is simply untrue. The credit scores of many of our clients improve right after they file bankruptcy. Why? They no longer owe their unsecured creditors, so the total amount of debt they owe dramatically decreases. Even though a bankruptcy will stay on a person’s credit score for 10 years, it is still possible to improve the credit score before the 10 years are over.
We offer a program to help our clients improve their credit scores after bankruptcy, giving them step-by-step directions so they will know exactly what they need to do to help their scores to improve. Our goal is to help our clients to qualify for a regular interest loan only 2 years after filing.
Can you repay your debts and improve your credit score within the next 2 years on your own? If not, contact our office to discuss filing bankruptcy. Bankruptcy can quickly and legally eliminate your debts, getting you on the path to a fresh financial start.