Online Pawn Shops Lend Cash Fast(online.wsj.com)
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Online Pawn Shops Lend Cash Fast
http://online.wsj.com/article/SB10001424052970203518404577094701656317574.html
5 comments
I don't know where you're getting ~36%? Borrower in OP had a 3% interest rate, and the article stated an industry average of 10-20%.
With that aside, I don't entirely disagree with your argument.
With that aside, I don't entirely disagree with your argument.
Interest on loans/credit is reported in terms of annual rate, not monthly. This loan at 3% per month is 36% per year. You won't find a credit card in the US at an interest rate that high.
I would not be so sure about credit cards. I was in search for basic credit card when just moved to USA to start my credit history somewhere... I was offered credit cards which are:
1) Secured. I.e. I have to have whole credit line amount as a cash on CD with the same bank.
2) Annual fee is 50% of credit limit
3) standard APY 37.5% and penalty APY even higher
4) Credit line - less then $500
And I bet this one was not worst one.
1) Secured. I.e. I have to have whole credit line amount as a cash on CD with the same bank.
2) Annual fee is 50% of credit limit
3) standard APY 37.5% and penalty APY even higher
4) Credit line - less then $500
And I bet this one was not worst one.
If you have to borrow at 36%, you are doing it wrong. You must consider your exit strategies or simply look for a job.
I'm reminded of a line from the producers:
"Never invest your own money."
I don't see how one could make methodical and appropriate business decisions with the gun pressed to their head of potential financial ruin.
I don't see how one could make methodical and appropriate business decisions with the gun pressed to their head of potential financial ruin.
I was hoping to read of something truly innovative, like putting up your Steam account as collateral. Oh well.
Only use these services in the most dire of financial circumstances. If you're in a situation where you have to pawn valuables, it may be time to start thinking about getting a normal job to reassess and regroup.