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I am often asked the question; What does bad credit cost me?”

It is a hard question to answer because of the individual’s circumstances and the fact that lenders are competing fiercely for customers.

But I will give it my best shot.

Mortgages

If you know your credit score you will be in a position to make a pretty good guess at what interest you will be charged on a mortgage. In today’s (March 2006) market, mortgage rates for those in the top or prime category, with a score above 720, will pay around 6.25%.

As your score declines your rates will increase.

For those in the second tier, with a score between 700 and 720, rates will go up to around 6.38%; for those in the third tier, with a score between 675 and 699, rates will be about 6.91%; for those in the fourth tier, with a score of 620-674, rates will be about 8%; in the fifth tier, with scores in the area of 560 to 619, the rates increase to 9%; finally for those with the lowest scores, 500 to 559, the rate jumps to 9.82%.

On a $150,000 mortgage, your payments will be between $926 and $1411, a $485 difference per month.

Additionally, those in the lowest tiers will face higher loan origination fees.

Most bankrupts will be in the 650 area - if they behave themselves - within two years of bankruptcy. You will save a lot of money if you push your score above 675 before trying for a mortgage.

These numbers are not written in stone and vary from lender to lender. According to some news accounts, you can qualify for the lowest rates with a score of 620, but proof of that is hard to find.

Auto Loans

You will not qualify for zero or low APR financing offered by manufacturers. You will have to deal with a sub prime lender and will be charged rates in the 21 to 24% area.

Again, loan origination fees may be high.

Credit Cards

Interest rates will be high up in the 30% area. If that was not bad enough, bad credit risks face fees that can choke an elephant.

Fees commonly charged to those with poor credit include the following:

Setup fee - while you can find some lenders that may not charge a setup fee, fees between $29 and $49 are not uncommon.

One time fees - these can be as much as $100

Account maintenance fees - $6 or $7 a month

Annual fees - $35 to $150

Bad credit credit card fees can easily run over $250 the first year, a little bit less after that, if you are not careful.

Other Hidden Costs

Bad credit can ruin your chances of getting a new job if you employer checks your credit report, which many do.

Some auto insurance companies will charge you higher premiums if you have bad credit.

Your utility deposit may be higher than for those with good credit.

You may not be able to rent an apartment, if the landlord doesn’t like your credit.

Even though just about anybody can find credit, no matter how bad their credit score, that doesn’t mean it will be inexpensive, or even affordable. It pays to shop around and read the terms of any offer of credit very carefully.

Rebuild your credit. Pay all your bills promptly and without fail. Only use a portion of your available credit, 20 to 25%. Avoid applying for new credit.

Within two years or so, if all goes well, you may qualify for better credit terms.

For more information on credit and the ways to find the best deals, visit http://www.credit-yourself.com/financial-services.html

Chris Cooper, a retired attorney, and his wife Aileen, who has an MBA in Finance, provide personal financial planning advice at Credit Yourself - http://www.credit-yourself.com

Tags:insurance,car insurance.life insurance Bad credit, tag3, debt management, bad credit mortgages, tag1

Tags: bad credit, bad credit credit cards, bad credit mortgages, debt managementbad credit, bad credit credit cards, bad credit mortgages, debt management

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The best judge of Total Disability and/or Partial Disability is “Ole” Doc Comfort your attending physician. The Medical Report he executes for the insurance company you’re battling with, Rock Solid Insurance Corporation, should always contain his comments regarding the nature of your disability. His diagnosis will be crucial to I. M. Smart, the adjuster assigned to handle your claim, because it will detail the duration of your “Pain and Suffering”. In addition it will also prove the time you lost from work as being legitimate.

When settlement time arrives, Smart will form a healthy portion of his evaluation based on the documented proof of the length of time of each of the following two elements: “Total” and “Partial” disability - - the both of which will indicate how much they restricted your inability to work and also your social activities.

YOU MUST CONSIDER ALL THE POSSIBLE OPTIONS FOR MEDICAL REIMBURSEMENTS: Be aware that you may be able to collect from your own motor vehicle insurance carrier (via your “Medical
Payments” coverage) plus you may also be able to collect from your own health insurance policy or plan.

Yes, Rock Solid Insurance, in a clear case of liability (and as part of its settlement with you) will pay your medical bills. BUT HOW ABOUT YOUR OWN MOTOR VEHICLE POLICY’S MEDICAL PAYMENTS COVERAGE? You must read your motor vehicle accident policy carefully. It may provide you with coverage up to certain limits (one or two thousand dollars - - some a lot higher) for all the medical bills you had as a result of the accident - - regardless of who was at fault!

“Med Pay” is a separate part of your policy, which you pay extra for, but it’s definitely worth it. Since you’re shelling out money for this extra coverage you should consider taking advantage of what it offers.

The following people are usually covered under the Med-Pay provisions: You or any relative who lives with you (when driving or riding in your vehicle) plus anybody else who is driving with your permission (and also their invited “guests”) who happen to be riding along with them in your car.

It may state in your policy that your insurance company has a right to recover the amount of the Medical Payments made to you should you (later-on-down-that-often-very-loooong-rocky-road) get paid for your loss by Rock Solid. But, even if you don’t, you’ll still be paid for your medical bills under the Medical Payments (Med-Pay) Coverage of your motor vehicle insurance policy without having to pay your insurance company back.

It’s usually a practical move, to elect to file a claim with your own auto insurance company (under the Med-Pay Coverage) so you can be confident all your medical bills are paid in time. Otherwise, your medical providers may get upset because they’ll have to wait far too long to be paid (somewhere down the line - - perhaps a year - - sometimes much longer) until you finally settle for your loss with The Rock Solid Insurance Corporation.

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YOUR OWN HEALTH INSURANCE POLICY/PLAN: There’s another possible medical bill coverage for your accident - - and that’s your Health Insurance policy or whatever Health Plan you may be under. If the Med-Pay provisions of your motor vehicle policy state that they must be paid back, should you collect from Rock Solid, you may find it more advantageous to file a claim under your Health Insurance policy or some other Health Plan. HOWEVER: You should check the wording in those policies very closely because they may NOT require you to pay them back for the medical payments they’ve made on your behalf - - even if you collect for your loss from The Rock Solid Insurance Corporation !

There’s nothing wrong or immoral about collecting money from more than one source for the same medical bills. Think of it like a Life Insurance Policy. If an individual is paying premiums for three $10.000 Life Insurance Policies and they pass away, is the love-of-their-life (as the named beneficiary) entitled to $10,000 or $30,000? Indeed, because the premiums were paid on all three, that individual is entitled to a payment of $10,000 times three, or $30,000.

By the way, if Adjuster Smart happens to ask you if you have any such options, don’t tell him. Whatever other insurance coverage’s you have is your own business! It has absolutely nothing to do with the value of your claim, how much money you should be paid for your “Pain and Suffering”, nor any other portion of your loss.

NEVER FORGET: You’ve already paid for these types of coverage and you’re entitled to be paid under all your options for reimbursements - - even if that means you’re paid by multiple sources for the same bills !

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DISCLAIMER: The only purpose of this article ~ YOUR PERSONAL INJURY INSURANCE CLAIM ~ SEVERAL CRUCIAL SOME “INSIGHTS” INTO MEDICAL REIMBURSEMENTS is to help people understand the motor vehicle accident claim process. Neither Dan Baldyga nor EzineArticles.com make any guarantee of any kind whatsoever; NOR to they purport to engage in rendering ay professional or legal service; NOR to substitute for a lawyer, an insurance adjuster, or claims consultant, or the like. Wherever such professional help is desired it is THE INDIVIDUALS RESPONSIBILITY to obtain said services.

Copyright (c) 2005 By Daniel G. Baldyga. All Rights Reserved

Dan Baldyga spent over 3 decades within the area of Insurance Claims, as an Adjuster, Supervisor, and then Manager. He was then promoted to Trial Assistant where he worked another 5 years on thousands of Insurance Claim cases. He has had 3 “How To” Insurance Claim books published, the latest being AUTO ACCIDENT PERSONAL INJURY INSURANCE CLAIM. (How To Evaluate And Settle Your LOss).(EZINE ARTICLES = If you want one of these MUCH LONGER with much more depth please advise and I’ll send it to you. Thanks.

Dan Baldyga’s third and latest book AUTO ACCIDENT PERSONAL INJURY INSURANCE CLAIM (How To Evaluate And Settle Your Loss) can be found on the internet at http://www.autoaccidentclaims.com or http://www.caraccidentclaims.com. This book explains, in simple language, “How To” handle your motor vehicle property damage and/or personal injury claim so you won’t be taken advantage of. It also contains BASE (The Baldyga Auto Accident Settlement Evaluation Formula). THE BASE FORMULA will explain how to determine the value of the “Pain and Suffering” you endured - - because of your motor vehicle accident injury!

Tags:insurance,car insurance.life insurance Personal Injury, tag2, tag1, “Pain and Suffering”, tag3

Tags: Auto Accident, insurance claim, Personal InjuryAuto Accident, insurance claim, Personal Injury

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When Dumpty Humpty fell off the wall the creditors started calling and sending threatening letters all about what they were going to do to you and your credit. With speed dialers and predictive dialing systems there is no escape from this onslaught of harassment. Only a positive and proactive plan can meet and beat this bombardment from the creditors. The pieces after the fall can be put together again and it won’t take all the king’s men, you can do it yourself. I’m assuming there is some cash flow and some continuing employment for what follows.

Like other challenges, whether it is medical, academic, work or whatever the case, a proper assessment of where you are at is the first step and by recognizing there is a problem is in the forefront and foremost to a solution. An inventory has to be taken of income, living expenses, luxury items, and monthly debt that must be met. If it is a married couple, both have to participate in this process from start to finish to have a chance at any success. A foreign term to many households is the word “budget”. After the eye rolling and plowing through the denials of any existence of a problem a decision needs to be made to address the challenge of being upside down on consumer debt. The alternatives are not pleasant. This single issue of consumer debt has plunged many a marriage into the divorce courts further complicating an already challenging situation. If an individual or a couple can come to grips with saying yes to working out a plan that is a winning point in the first skirmish of this battle.

All the credit debt has to be laid out on say the kitchen table from: the home mortgage payment obligations, all credit cards with balances, utility bills, cable bills, cell phone bills, water and sewer bills, garbage bills, club memberships, spas, book clubs, day care requirements, lawn service, health insurance, life insurance, disability insurance, maintenance contracts, gasoline cards, auto repair bills, auto insurance, school supplies and expenses, internet service, magazine subscriptions, team sports and leagues, recreational activities, vacation plans, 401(k) and IRA status or other retirement accounts, religious donations and pledges, charitable contributions, your current with holding exemptions for income tax and any other type of expenditure that is made on a monthly or yearly basis. From this step you can start prioritizing each expenditure by establishing separate piles and stacks of bills from the most important to the least important.

In most cases the mortgage payment obligation will be in the highest priority pile then home utilities. Everything else would be secondary, otherwise, you may be moving soon. The credit cards would be stacked in a pile and by priority other stacks may be separated as well. All this information needs to be listed on a sheet with due dates with balances and required payments. The customer service numbers need to be listed along each item together with the account numbers. It is here that brutal honesty must prevail on what absolutely must be paid. If there are children involved and can be included in the discussion then all the cards must be laid on the table. They will figure it out by themselves soon enough. It will be an important life lesson for the future when they have the opportunity to start making their own way and have credit choices to make. The vision of the pile of bills stacked on kitchen table will be a strong example if credit privileges are abused. Likewise, when this situation is turned around the children can feel a real sense of accomplishment, as they were part of the process to a winning resolution.

There are many books at the local bookstore, which contain budget forms to guide you through this daunting process of putting the financial pieces back together for you and your family. When this information is quantified so that you can see the big picture then a strategy can be laid out to turn this predicament around. If necessary, depending on the severity of the shortfall, each credit card company can be contacted immediately and work out a repayment plan at a reduced monthly payment. Other items in the stack need to be dealt with similarly to get an accommodation for repayment. Cards need to be cut up and perhaps settling on using a debit card only. Ways to increase income including a part time job need to be considered right away.

If you have been getting an income tax refund every year, adjust your W-4 for exemptions immediately and get more cash flow now. Once you decide to dig out and turn this around, there are really only three options. (1) Make more money. (2) Reduce expenditures. (3) Do Both. This situation can be turned around in a few years. A budget with a planned savings program has to be primary then start paying off the mortgage early and save even more cash. You can win this game.

Dale Rogers is a thirty-year mortgage veteran and frequent contributor to the Broken Credit Blog The BCB is a free website created to assist the general public with information about credit repair and responsible mortgage lending.

http://www.BrokenCredit.com

Tags:insurance,car insurance.life insurance family budget., credit card defaults, tag3, Credit repair, tag1

Tags: broken credit, credit card defaults, credit harassment, credit repair, family budget.broken credit, credit card defaults, credit harassment, credit repair, family budget.

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