Start-Up Business Loans

Biz4Loans a Small Business Loan Company in California Discusses an Easy Way to Figure the Cost of Bad Credit

Ever wonder what a bad credit score costs us? No need to wonder anymore. The editors at have created a new online tool -- the Lifetime Cost of Debt Calculator -- that tells in dollars and cents.


Fresno, CA -- (SBWIRE) -- 11/04/2014 -- To be specific, a 30-year-old with poor credit is likely to pay a quarter-million dollars more in interest payments over her lifetime (assuming an $18,000 car loan, $5,000 in credit card debts and a $400,000 mortgage) than a similar person with a pristine score. If the credit is good, but not excellent, we'll pay about $30,000 more over our lifetime than that individual with excellent credit, according to the calculator.

"It's easy to underestimate how much a credit score can cost -- or save -- we over a lifetime of borrowing," said Gerri Detweiler, director of consumer education at "Most people understand that it affects their ability to get a car loan or rent an apartment, but they underestimate how much their credit affects how much they pay in interest."

The new calculator is completely interactive. Consumers can plug in their own loan balances and slide the toggle bar to see how much their debt will cost them given their current credit score, or the score they think they might be able to attain with better behavior.

What might happen to our cost of debt if we file for bankruptcy? Slide the toggle bar to the left for the distressing news of what we'll pay if our credit goes belly-up.

The calculations assume that, at today's rates, a consumer with perfect credit (740 or more) will pay just 3.75 percent for a mortgage, while someone with poor credit would pay 6.25 percent (if they could get a loan at all).

The cost differences are far greater with unsecured debts, such as credit cards (rates range between 9.25 percent and 24 percent) and debts that are secured by a depreciating asset, such as auto loans (3 percent to 15.4 percent). And the cost of car loans assumes that the average borrower will have 18 different cars over a lifetime, buying a new car every three or four years.

Loan rates change over time, so will periodically update the calculator's interest rate assumptions, too, Detweiler said. But the tool isn't aimed at giving consumers a to-the-penny estimate, she added. It's really about graphically explaining the benefit of maintaining good credit.

The calculator itself also doesn't provide any advice on how to improve our score. But consumers who want to sign up for a free account can access their current score and get a personalized plan aimed at improving it. (Other credit sites, including CreditKarma offer a similar free service.)

Note that any site offering a credit report or credit score will ask for our Social Security number to pull our credit report. That report will also be used to make recommendations for improvements.

About Fast Business Loans and Commercial Loans
Biz4Loans is a California-based company with an exciting new way of quickly closing commercial loans for businesses small and large. With a customer-centric focus and a high standard for quality service, we embrace new technology to pass cost savings on to our business clients. Entrepreneurship Advocates “Entrepreneurship is living a few years of your life like most people won’t, so that you can spend the rest of your life like most people can’t. “ – Anonymous We believe entrepreneurship to be one of the most rewarding journeys that a person can pursue and that no two entrepreneurs are the same. Some seek a better life for themselves and their families while others take on the risk in pursuit of independence. Whether it is a small town where everyone knows each other or a big city that never sleeps, every community relies on entrepreneurs to create and provide jobs and to usher in new possibilities. At Biz4Loans, we understand the challenges that entreprenuers face in financing their venture. We also understand that a startup entrepreneur frequently has to wear many different hats while her company is getting off the ground. This is why we provide a quick, convenient, and detail-oriented process that achieves results without unnecessary delays or obstacles. Growing the Business Community commercial loan brokers Whether it is financing to cover initial start up costs, purchasing of new equipment for an existing business or an expansion of facilities, Biz4Loans can help. We know that sometimes unexpected costs as well as unexpected opportunities require quick and decisive action. Our ability to quickly close a wide variety of loans has allowed us to build strong relationships based on our reputation for serving our clients effectively. Because of our speed and adaptability, Biz4Loans has brokered over $500 million in funding to businesses ranging from farms, hotels, and non-profits to office buildings, surgical centers and apartment complexes.