It is only natural for people to ask for help when they are in financial trouble. It is also within our human nature to offer that person a helping hand. The only thing that can throw off this natural human interaction is our stubborn pride. Our "pride" often impacts our financial decision making process and determines when we ask for help; if we bother to ask for help at all.
Most people wait until they are in serious financial trouble before they even ask for help. Often, by the time they do ask for help, it is extremely costly and sometimes too late to even do anything about their situation. On the other hand, If someone were to offer this same person a helping hand too quickly, they are perceived as "interfering" or "all up in my business". Parents of teenage children know exactly what I am talking about right now.
Let’s look at the search term "bad credit loan" for instance. According to Google, specificly their search data department that keeps track of everything that people search for, in March more than 100,000 people searched for the term "bad credit loan". On the other hand, just shy of 5,000 people searched for the term "bad credit repair".
When I added up all the people that were looking for various loans related to bad credit, including multiple keywords and similar searches, the number was over 1,000,000 people searching for loans with "bad credit". The number of individuals who looked for bad credit repair, or something similar, still remained under 10,000 people total.
The only natural conclusion then, is that only 1 out of every 10 people are looking to finally cure the problem. The rest of the people are looking to cure the symptom that ails them.
Logically, you and I know that the bad credit problem started much earlier than the need to get a "bad credit loan". If this was not true, then more people would have been searching for ways to actually repair their credit, rather than searching to remedy the bad credit problem with yet another loan.
Society as a whole seems to seek the remedy a lot more than preventing the problem. We live the dream of "buy it now" and "pay later". It is costing us financial independence. Let’s look at two other search term examples, “bad credit mortgage” and “bad credit home loan”. More than 79,000 individuals looked for these two specific services in December as well.
According to Fair Isaac Corporation, a person with a poor credit score (between 500 – 579) is expected to pay $819 for a $100,000, 30 year fixed rate mortgage. For the exact same loan amount, a person with an excellent credit score (between 760-850) would pay just $589 per month. That is a difference of $230 per month! This means that a person with poor credit pays over $82,000 more than someone with excellent credit.
The most amazing part of all this is that there is so much help out there. There are plenty of books, tapes, ebooks, and even credit repair firms that cost much less than $82,000. The problem is that most people people chafe at a $30, $50 or even $100 fee, but they readily agree to much worse solutions that can cost them hundreds of dollars per month for more than 30 years!
You now know these statistics, and you know your current situation better than any one else. My sincere hope is that by reading this article you will not have to deal with bad credit issues. But if you are going down that road in your life currently, consider placing a lot more of your time and attention on repairing your bad credit rather than obtaining a mortgage for someone with bad credit.