How Much is Poor Credit
Costing You?

It's easy to think that bad credit is no problem from the advertisements in the media. Have you ever studied the fine print on those "easy credit" and "pre-approved" ads? You'll discover that people with low credit scores are paying twice, three times, even four times the amount of interest that a person with higher credit scores pays.

The lower your credit score, the fewer options you have for choosing a lender. Those that specialize or prefer to lend to consumers with lower credit scores are balancing the risk of default with the reward of significantly higher interest rates. If your credit report is impacted by inaccuracies, misstatements and/or misleading information, you may fall into this category even though you do not pose the same risk as someone whose credit score accurately reflects their credit worthiness. The result can be thousands and thousands of dollars of unnecessary payments.

The Solution? Professional Credit Report Repair with Ovation Credit Services.

As you increase your credit score, you'll qualify for lower interest rates. This means that you pay less to borrow the same amount, resulting in a significant savings to you. For example, the following chart shows what interest rate and monthly payment you could expect to pay on a $150,000.00 30-year fixed-rate mortgage:

What bad credit can cost you!

Your monthly payment can fluctuate by 30 percent, just based upon your credit score alone! More importantly, the total amount of interest paid throughout the term of the loan can fluctuate by as much as 50 percent. In the above example, a borrower with a credit score in the 500-559 range can expect to pay up to $130,000.00 more in interest than a borrower in the 720-850 range over the same 30-year term. Keep in mind that in both scenarios, the same amount of money ($150,000.00) was borrowed. The borrower with the higher credit score will pay significantly less in interest payments during the same time frame, simply because they are viewed as a lower risk of default. Don't be a victim of an inaccurate credit score. Repair your credit report today and start saving money now!

Your Credit Report Ratings

credit report

Don't understand your credit report? Don't know what the numbers and letters mean under the ratings section. Let us help you understand your credit report a little better. Below are the numbers used to rate an account and the "R" before the number means that it is a Revolving account.

  • R0 - Too new to rate. Approved but not used
  • R1 - Paying as agreed
  • R2 - 30 days late: Late more than 30 days, but less than 60
  • R3 - 60 days late: Late more than 60 days, but less than 90
  • R4 - 90 days late: Late more than 90 days, but less than 120
  • R5 - 120 days late, but is not yet rated collections
  • R6 - 150 days late, but is not yet rated collections
  • R7 - 180 days late, Paid through a debt management or credit counseling program
  • R8 - Over 180 days late, Repossession
  • R9 - Bad debt: Collection, Charge Off, Bankruptcy, Included in Bankruptcy, Judgment, Lien, Foreclosure

Each item on your credit report carries a corresponding rating number that summarizes your account status.

  • R - Revolving Account - A credit account that is charged and once paid can be used over and over. A revolving balance.
  • I - Installment