Different Strokes for Different Credit Scores
Wednesday, 25 July 2007 by Jacob TomawI have been trying to think of what to say about CashCall for 4 days. I am mostly still baffled by this so let me lay out the fact.
Jos and I were watching a bit of Pulp Fiction on Bravo on Saturday. During a break, up popped Gary Colman selling quick loans to us. I assumed these had high rates like most payday loans. However I had a “What you talk’n ’bout?” moment when the fine print popped up.
I thought, “Did that just say 99.25% APR!?” Power of Tivo activated and yes, it did say 99.25% APR. For a loan of $2600 you will make 42 easy payments of $216.55! This loan will cost you over $9000.
Now this might be a good deal for some people with bad credit. However you still have to pass a credit check. Are they just checking if you credit score isstill in the triple digits?
I realize there might be a situation where you just have to get the cash NOW. However I have advice for those who might be taken by these loans? Before you call for cash make sure all of the following options are not posible.
Can you…
- Go to a bank with walls and deposit accounts!
- Go to a loan shark!
- Talk to a Rabbi/Priest/Preacher/Imam!
- Beg at least the first 100 people you see on the street! (100*$26 might be east to come by if you explain you are about to agree to 100% interest!)
- Come to me! I will give you a small loan for only 75% APR.
July 25th, 2007 at 15:52
Want to start up a loan business?
July 29th, 2007 at 15:48
Did the fact that Gary Colman was the spokesperson not clue you in? I believe the man has gone into debt so many times that his credit score probably warrants going to such a business for loans.
One does have to wonder, with rates that high, they surely only appeal to people who, as you said, have extremely bad credit ratings. So, the business must not anticipate getting frequently fully reimbursed for their loans. Thus the high APR must be to recap losses and make quick profits before the borrower defaults/declares bankruptcy/gets his kneecaps broken. Maybe this is a money laundering business?
Chris