CAN YOU AFFORD A LOW CREDIT SCORE?
The Johnson Law Office cares about our clients both during and after bankruptcy. That’s why we plan your bankruptcy so that you will be in the best possible financial position after your bankruptcy. While we do not guarantee that you will be qualified or pre-qualified for any loan within a certain amount of time, you will increase your chances of getting pre-qualified for a mortgage loan if you follow some basic principles. Your ability to pre-qualify for a mortgage or a car loan is determined mainly by your credit score and credit history. Your decision to buy a home versus continuing to rent can be one of the wisest financial decisions of your life. By preparing yourself and your credit score before a home purchase, you can increase your chances of getting the mortgage and even getting a more attractive interest rate and lower monthly payment. You need to seriously consider taking credit repair action on your own, or hiring someone else to do so. By raising your credit score, you increase your chances of getting a mortgage after bankruptcy, and of getting a lower interest rate.

Below are just a few examples of the cost of a low credit score.
There are four major categories:
1. Home Ownership versus continuing to Rent—30-year savings of over $200,000.00.
2. Mortgage Interest—30-year savings of over $95,560.
3. Vehicle Interest—30-year savings of over $40,000.
4. Insurance Costs—30-year savings of over $30,000.
TOTAL SAVINGS OF $370,000 OVER 30 YEARS.

You might already have a home that you continue to pay on through your bankruptcy. But you still might want to get your credit score raised. Take a look at the chart below, which shows you what a difference it makes to have a higher credit score.

Home Financing:
A LOW CREDIT SCORE CAN COST YOU $95,560.00
A 30-year fixed loan with a loan principal of $175,000

FICO Score	APR Rate	Monthly Payment	Interest Paid
720-850	6.307%	$1,084	$215,240
700-719	6.432%	$1,094	$220,385
675-699	6.969%	$1,165	$242,830
620-674	8.119%	$1,293	$292,508
560-619	8.531%	$1,350	$310,800
550-559	9.289%	$1,444	$345,067

If your credit scores are below 620, and you improve those scores to above 720, you could save $266 per month on your payment, $3,192 per year, and $95,560 over the life of the loan.

Getting your credit score raised will save you big bucks not only on your mortgage monthly payments, but on your car or truck payments also.

Automobile Financing: SAVE $41,100.
Over the next thirty years that you’ll finance your car or truck, you’ll save over $41,100 by taking the time right now to getting your credit score raised.
When you combine that with the mortgage interest savings that your improved credit score will bring you, you’ll be saving almost $140,000.
In addition to mega savings on mortgage interest and vehicle interest, you will save also on insurance premiums when you get your credit score improved.

Insurance Premiums: SAVE $30,000.
The insurance companies say that if you have a low credit score, you are more likely to file insurance claims, so insurance companies take a close look at your credit scores and raise your premiums the lower your credit score is. But if you get your score raised, your premiums will decrease and you’ll save money.

When you combine the mortgage interest savings, the car/truck interest savings, and the insurance premiums savings over the next thirty years, you save a total of over $170,000-$200,000 by improving your credit score.

Employment Opportunities Missed or Gained
When your boss is considering you for a promotion, he/she is allowed to pull your credit and see what your score is. Their thinking is this: “If this person has a low credit score, then they won’t be trustworthy, so I’ll find someone else to promote.” You owe it to yourself to put yourself in the best possible light by improving your credit score.

BOTTOM LINE: You need to get started on getting your credit fixed. You are more than capable of doing this yourself, but you might want to have a professional do this for you. This law office does not work on improving your credit. We will be happy to refer you to several companies that offer that service.

Whether you’re buying a home or refinancing your current home, we want you to get your credit score raised to increase your chances of getting a mortgage loan, and at the interest rate and monthly payment that you deserve. Again, we do not fix or repair your credit. We encourage you to either do that yourself or hire someone who will do it for you for a reasonable fee. We will be happy to refer you to several companies that offer this service. Call (888)662-1058.