10.26.08
Low Loan Rates - Low Loan Rates For People With Bad Credit Too
Doesn’t it seem like EVERYBODY has bad credit? Big businesses, small businesses, banks, super-famous celebrities, and regular every day people. Some of the largest financial organizations in the country are filing bankruptcy or asking the government for help. Merrill Lynch, Lehman Brothers, and AIG Insurance all needed loans or they were going to have to file bankruptcy. Wow!
But check this out… When big businesses have bad credit, they get bailed out by big banks, other big businesses, or the federal government. These businesses get approved for multi-million and billion dollar loans, they get the lowest interest rates possible to keep them from going under. They may have to pay the ’Fed funds rate’ or the ‘discount rate’. According to Bankrate.com, as of 10/22/08, the Fed funds rate was 1.5%, and the discount rate was 1.75%. These low interest rates give them the opportunity to structure affordable repayments, even though they have bad credit.
Now when consumers are offered loans, those with the BEST credit are approved for low interest rates. As of this post, consumers with excellent credit could qualify for a 15 year fixed rate home loan with the low loan rate of 5.59%. People with bad credit, however, could pay home loan rates of 9% or more.
Let’s do the math. If you have good credit, a 15 year mortgage of $100,000 with a 5.59% interest rate would carry a monthly payment of $821.87. If you have bad credit, that same $100,000 mortgage with a 9% interest rate would carry a payment of $1014.27. That’s an extra $192.40 per month you have to pay just because of your bad credit score. Over the course of the loan, you will have paid an extra $34,632 more than the guy with good credit.
Ok, stick with me now…. Big businesses with bad credit get low interest rate loans. Consumers with bad credit get high interest rate loans. What gives? ‘Big business’ is a reflection of the economy. Big businesses have bad credit. Consumers are a reflection of the economy. Consumers have bad credit. So if everybody has bad credit, why is it that big businesess get a break with these low loan rates and consumers are left to struggle to pay even more for their loans? If everyone has bad credit, why don’t banks make it easier for EVERYONE to repay their loans. Having to pay an extra $200 bucks a month could mean the difference between making your mortgage payment, and not being able to make your mortgage payment.
Well I tell you one thing, LowRateSearch.com will continue to be diligent in offering consumers lots of help finding low loan rates, whether you have excellent credit, good credit, okay credit or even bad credit. And if you have bad credit and want some help repairing it so you can qualify for low rates too, we will match you with a legitimate credit repair company and/or a professional debt negotiator to help you get take control and get your credit report back on track. The higher the credit score, the lower the interest rates you can qualify for. We are here to help you with your bad credit repair so you too can get the lowest rates.
Ken S.
© 2008
Ken S. is the founder of www.LowRateSearch.com and makes it the company’s mission to help people save money with low loan rates, affordable insurance, and travel deals too.
