And we know how the military and vets are nothing more than pawns of convenience for Trump and the GOP.
What ever gave you that idea? Very often, people from the lower economic rung join the military. When they apply for credit, they get it at 21% or higher. Since they are on the lower economic rung, these types of percentages are what they are used to. Young military members are their target group. They get hit hard. The lenders know the command will step in and guaranty they get paid.
People with great credit donât carry large balances anyway⌠you canât âmake up the differenceâ by raising a rate on nothing. And 15% is not far off for average people. Good luck with that!
So you want to help the local loansharkâŚ
Free market.
These people are the loansharks. Where have you been?
As long as everything is disclosed, I think it should be able to go higher than that. Among the poor, there are many that default on loans. If the return is capped at 15% annual, there is not a big enough return to make it worth the effort.
Say I borrow 500 dollars to pay my rent. @ 15% apr, the lender would get 75 dollarsâŚin a year for interest. In a month, he gets less than 7 dollars. Why would he take the risk on loaning me 500 dollars hoping to get back the 500 he lent me, plus 7 extra dollars for the month? That 7 dollars is not worth the effort if I default.
Many of the poor like the idea of being able to borrow 500 and only having to pay back 550 in a couple of weeks and everything is done and complete. To them, that is 50 well spent. But that 50 in 2 weeks equals 10% in 2 weeks, or an annual rate (APR) of 260%
They will get it in other ways.
Places I went to when I was dumb would charge a $125 âapplication feeâ on a $500 loan.
But they arenât breaking legs for failure to pay back the loan.
Get rid of legal ways to borrow money, and you enable the actual criminal loan sharks.
yes, the payday lenders charge too much, IMHO, but itâs much better than those same people borrowing from Guido down the street.
Did you have to pay the app fee if you were denied? Could you roll the app fee into the loan, so say you really want 500 but the app fee is 125 so you actually borrow 625?
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no, but I never heard of them denying anyone.
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yes.
Sounds good to meâŚâŚâŚâŚCan I read the thread now?
They will refuse card to people who shouldnât have them anyway and their little unethical bonanza will be over. Cry me a river.
Use my Navy Federal issued VISA at KROGERS every week.
Just filled my gas tank with it about 20 minutes ago.
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Not always. Military careers are sometimes ruined by bad credit and security clearances are denied for bad credit. People get booted right out sometimes.
This thread is wow. Actual people arguing to keep their own high interest rates because freeberty.
So does this mean 750 will be considered a decent score again? I mean if 850 is the max, how is 750 not a decent score? Unless of course the scores donât really mean what the bureaus say they do.
Not me. Iâd be happy with 15% on my credit cards. Anybody who wouldnât be is nuts or is lucky enough to have one lower than 15%, which used to be a thing. And even if everybody ends up with 15%, WHO THE HELL CARES? I could not care less if credit card companies lose money in the short term. Theyâll more than make up for it before the end of the year, since theyâre owned by banks, who are literally creating money out of nothing by get thisâŚloaning it out.
A lot of crap is tied to credit that shouldnât be. Insurance rates for driving is another example.
I hadnât heard about insurance rates.