How Does the Credit Score Influence a Bad Credit Loan?
Those that have less than 600 credit rating are deemed with bad credit. If you have bad credit, then you would be charged a higher rate of interest than those with good credit. If you have a credit rating above 720, you have good credit rating. Those that have good credit rating are able to get loans ranging witching 6-8% interest rates. But if you have bad credit rating, then you may be charged a higher interest rate of 12-17%. Rates differ from state to state. For example if you have a good credit score between 760 and 850, then you would be charged $772 for 36 month car loan on $25,000. But if you have credit rating below 580, you would be charged $884. This means that you would be paying $112 more for the same loan. Over a 36-month period, you would have paid, $4032 more if you have bad credit. FICO scores are comprised of all the loans, payments and credit card payments that you have made. If you have made payments on time and in full, then you would have an excellent credit score