There is an actual cost to having bad credit
Yup, that’s right. Having bad credit actually costs consumers thousands of dollars in additional interest payments and higher insurance premiums each year. According to CBS News, a 30-year-old person with poor credit is likely to pay a quarter-million dollars more in interest over his or her lifetime compared to a similar person with excellent credit. That’s why we created MoneyLion Credit Builder Plus to help people improve their credit while saving and borrowing for less.
Bad credit costs even more than you think
The amount consumers pay for having bad credit becomes even more significant when considering that paying those high interest rates prevents them from saving or investing those earnings instead. Let’s look at some hypothetical numbers:
Let’s say that by having a great credit score, you pay $200 less in monthly interest payments than your cousin who has the exact same loan amount as you but horrible credit pays. You decide to invest that additional $200 into a managed investment account over the course of 30 years (the normal length of a mortgage loan), and you are able to earn 5% interest on it. At the end of the 30 years, you would have accumulated $167,345.28. That sounds like a great nest egg for retirement. On the other hand, your cousin has $0 dollars invested at the end of the 30 years, because all that money was paid toward high-interest rate lending products. Bummer for your cousin.
Start building credit now with Credit Builder Plus
At MoneyLion, we help members build credit by reporting their loan payments to all three credit bureaus. This strategy has helped many members succeed, with most members increasing their credit score by an average of 30 points in their first 60 days. We also offer credit tracking tools within the MoneyLion app. Get a front row seat to watch your credit climb.
MoneyLion helps you build your credit
Credit Builder Plus help members build credit with anytime access to low APR loans. All that money saved on interest by improving your credit score and borrowing for less can be easily deposited into your MoneyLion investment account. Then you can watch your money grow through the power of compound interest. The sooner you start, the more you’ll earn over time. Learn more about Credit Builder Plus here.
What MoneyLion members are saying
You don’t have to take our word for it. Listen to what members are saying:
One MoneyLion Plus member stated back in March, “My credit score is up 47 points since January. I hope to meet my financial goal of purchasing a house by the end of next year. Thanks, MoneyLion.”*
In February, another member said, “My credit score has gone up 66 points since January with the help of this app.”*
Need help building your credit? Join Credit Builder Plus today and start building your credit while borrowing for less.