With excellent credit it is easy to get a credit card with a major credit card company, with no annual fee and a low interest rate, often under 10%. With Average to poor credit it is much harder to get a credit card, and the only cards available are likely to have an interest rate of at least 19% and a steep annual fee.   

The amount this can cost will depend on what kind of balance you carry on your cards. Paying interest on a high balance can cost hundreds of dollars each month.  

The extra costs of Average to bad credit can create a vicious cycle. Higher payments make it harder to keep up, and late payments will cost the consumer even more in late fees and default interest rates.

Employment and Housing  

Poor credit can even hurt consumer's  when applying for a job or renting a home. Landlords are hesitant to rent to tenants that they can't trust to keep up with the rent. Sometimes employers will screen out prospective employees based on poor credit history, especially if they are applying for jobs dealing with money, valuables, or finances.

Even a simple thing like getting a cell phone or starting a utility account is harder with average to bad credit. Utility companies and cell phone providers often require large deposits or fees for customers with medium to bad credit.