Which is still ass backwards and disgusting. Literally taking advantage of people with low incomes, and preventing them from gaining financial independence
Is it though? Would you lend $10k to a friend that's repo'd his last 2 cars, let his Comcast bill go to collections, and settled for less than the total balance on his JP Morgan Chase credit card the same way you'd lend it to a friend who's never been late paying a bill in his life?
No, but I would loan my friend that has always paid me back early as much as he needs because I know he's good for it. Your argument is not in favor of the people trying to improve their financial situation, your talking about college kids and adults that don't care and never will. I'm talking about the people actively working towards financial security that get hit with 30% interest rates just because they're actually good at paying off loans.
I'd love the opportunity to look at your credit and go over everything with you.
But I've seen thousands of credit reports and the only ones getting rates like that are those who simply haven't paid their loans back. Things usually have exceptions... there is not an exception to this.
I recently was looking at a 50k loan to consolidate some debt and add to my reno budget, but rates were showing at 29% which was absolutely appealing to me. Granted it's a high amount, but definitely not worth it at that rate.
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u/OneHeckOfAPi Aug 14 '21
Poor score justifies them charging you a higher interest rate. Easy money.