"Low Title Loan Rates"
March 30th, 2018 at 1:56:41 PM
permalink
Saw this on a Vegas bus stop on Flamingo recently. IF these are the LOW rates, I would hate to see the HIGH rates. Fortunately, I don't need a Title loan.
There's emptiness behind their eyes
There's dust in all their hearts
They just want to steal us all and take us all apart
March 30th, 2018 at 1:58:33 PM
permalink
Big numbers are good yeah? And these loans are 'secured' Secured is good isn't it?
$:o)
$:o)
Psalm 25:16
Turn to me and be gracious to me, for I am lonely and afflicted.
Proverbs 18:2
A fool finds no satisfaction in trying to understand, for he would rather express his own opinion.
March 30th, 2018 at 2:00:30 PM
permalink
84 percent a year! O.O That's exorbitant! O.O According to my calculations, a $5,000 loan is $4200! You give them back $9200 at 84 percent! O.O
In both The Hunger Games and in gambling, may the odds be ever in your favor. :D
"Man Babes" #AxelFabulous
"Olive oil is processed but it only has one
ingredient, olive oil."-Even Bob, March 27/28th. :D The 2 year war is over! Woo-hoo! :D
I sometimes speak in metaphors. ;) Remember this. ;)
Crack the code. :D 8.9.13.25.14.1.13.5.9.19.14.1.20.8.1.14! :D
"For about the 4096th time, let me offer a radical idea to those of you who don't like Nathan -- block her and don't visit Nathan's Corner. What is so complicated about it?" Wizard, August 21st. :D
March 30th, 2018 at 2:18:36 PM
permalink
I want to start a payday loan company with the absolute lowest possible rates. Let's say 1%. That would put all the other payday loan companies out of business and everyone would come to me, and I would make tons of money even at 1%. Everybody wins. I'm amazed that no one has done this yet.
March 30th, 2018 at 2:19:00 PM
permalink
They would underwrite my dog for this kind of loan.
Payday and other junk loan rates are so high in part to compensate for the huge number of loans that aren’t paid back.
Payday and other junk loan rates are so high in part to compensate for the huge number of loans that aren’t paid back.
March 30th, 2018 at 2:23:01 PM
permalink
Whole communities go to hell in a handcart where Payday loan companies descend and bed down. They are, IMHO generally scum of the earth parasites.Quote: gamerfreakThey would underwrite my dog for this kind of loan.
Payday and other junk loan rates are so high to compensate for the huge number of loans that aren’t paid back.
Your 1% undercutting, sadly would fail because they positively encourage a culture of default.
Psalm 25:16
Turn to me and be gracious to me, for I am lonely and afflicted.
Proverbs 18:2
A fool finds no satisfaction in trying to understand, for he would rather express his own opinion.
March 30th, 2018 at 2:39:31 PM
permalink
Quote: OnceDear
Your 1% undercutting, sadly would fail because they positively encourage a culture of default.
Ahh, but WHY do they default? Because they can't get out from under an 84% APR? If I offered a 1% loan, 0% for six months, with a very generous term, would that drastically cut down the default rate?
March 30th, 2018 at 2:47:14 PM
permalink
I'm pretty sure that in this world of supply and demand, that this 'modest and fair interest rate' approach has been tried. The organisations offering such low rates soon found the clients not viable/ Here in the UK, unsecured Payday loan interest rates are typically 1000% to 3000% APR. Our government tolerates this because they fear that to ban such lenders would drive the loan sharks underground. I don't agree with that notion. I see those 84% loans are secured on items like cars.Quote: TigerWuAhh, but WHY do they default? Because they can't get out from under an 84% APR? If I offered a 1% loan, 0% for six months, with a very generous term, would that drastically cut down the default rate?
Psalm 25:16
Turn to me and be gracious to me, for I am lonely and afflicted.
Proverbs 18:2
A fool finds no satisfaction in trying to understand, for he would rather express his own opinion.
March 30th, 2018 at 3:54:05 PM
permalink
You could open a loan company right next door and advertise 94% and a lot of people would think that is a better deal
March 30th, 2018 at 4:29:11 PM
permalink
Poking around online showed one multi-state chain advertise title loan rates of ~220%APR. In comparison, this is downright balmy.
In comparison, one site's offering a 30$ fee on 100$ for a 14-day payday loan. That's... what, ~800%APR?
In comparison, one site's offering a 30$ fee on 100$ for a 14-day payday loan. That's... what, ~800%APR?
March 30th, 2018 at 5:56:25 PM
permalink
Quote: VenthusPoking around online showed one multi-state chain advertise title loan rates of ~220%APR. In comparison, this is downright balmy.
In comparison, one site's offering a 30$ fee on 100$ for a 14-day payday loan. That's... what, ~800%APR?
That's roughly how much my local payday loan advances stores cost for a loan.
In both The Hunger Games and in gambling, may the odds be ever in your favor. :D
"Man Babes" #AxelFabulous
"Olive oil is processed but it only has one
ingredient, olive oil."-Even Bob, March 27/28th. :D The 2 year war is over! Woo-hoo! :D
I sometimes speak in metaphors. ;) Remember this. ;)
Crack the code. :D 8.9.13.25.14.1.13.5.9.19.14.1.20.8.1.14! :D
"For about the 4096th time, let me offer a radical idea to those of you who don't like Nathan -- block her and don't visit Nathan's Corner. What is so complicated about it?" Wizard, August 21st. :D
March 30th, 2018 at 6:06:32 PM
permalink
Quote: OnceDearWhole communities go to hell in a handcart where Payday loan companies descend and bed down. They are, IMHO generally scum of the earth parasites.
Your 1% undercutting, sadly would fail because they positively encourage a culture of default.
The age old question, is it the companies fault for offering these loans or the consumer for accepting them?
In the US, rates and fees are clearly spelled out, yet customers eagerly sign again.
March 30th, 2018 at 6:36:01 PM
permalink
Quote: BozThe age old question, is it the companies fault for offering these loans or the consumer for accepting them?
In the US, rates and fees are clearly spelled out, yet customers eagerly sign again.
I’m going to blame our education system. Not once was I taught about compound interest or any other personal finance topics.
But hey, why teach it if it’s not in the standardized test??
Last edited by: gamerfreak on Mar 30, 2018
March 30th, 2018 at 6:50:06 PM
permalink
Quote: gamerfreakI’m going to blame our education system. Not once was I taught about compound interest or any other personal fiancé topics.
Half the problems in our country would vanish if they started teaching personal finance from elementary school.
March 30th, 2018 at 6:53:43 PM
permalink
Quote: gamerfreakI’m going to blame our education system. Not once was I taught about compound interest or any other personal fiancé topics.
But hey, why teach it if it’s not in the standardized test??
No argument there. It’s sad the employees I get that have no clue about the proper withholding from their checks, how to sign up for direct deposit, etc. I do simple EZ tax returns for them when I find out they were going to go to Liberty or H& R Block and pay hundreds.
It really is sad the lack of knowledge on how to financially exist in the world they have coming out of HS.
March 30th, 2018 at 6:56:50 PM
permalink
And you wonder why 6/5 blackjack and 000 roulette exists...
March 30th, 2018 at 7:05:49 PM
permalink
There is some protection of the industry. I don't understand peer to peer lending, some are barred from borrowing flat out. Personal loans between people could go through them otherwise. Microlending works in other countries, maybe we just don't let it work here.
I am a robot.
March 31st, 2018 at 2:57:40 AM
permalink
I do have some money lent out Peer to Peer at about 3%. Hopefully that's doing my bit for the borrowing community. Not yet been stiffed by defaults. I use ratesetter.com popular in the UK.Quote: onenickelmiracleThere is some protection of the industry. I don't understand peer to peer lending, some are barred from borrowing flat out. Personal loans between people could go through them otherwise. Microlending works in other countries, maybe we just don't let it work here.
Psalm 25:16
Turn to me and be gracious to me, for I am lonely and afflicted.
Proverbs 18:2
A fool finds no satisfaction in trying to understand, for he would rather express his own opinion.
March 31st, 2018 at 7:03:47 AM
permalink
Quote: OnceDearI do have some money lent out Peer to Peer at about 3%. Hopefully that's doing my bit for the borrowing community. Not yet been stiffed by defaults. I use ratesetter.com popular in the UK.
I am in the process of getting screwed by Lending Club. I made some good returns early in the platform's history, but around 2014 there was some kind of shift either in the kinds of borrowers they were getting, or the kinds of notes that were available to ordinary investors like me. Whatever happened, default rates skyrocketed and thus real returns were pummeled. I am in the process of liquidating a bunch of notes (via the trading platform) in an IRA account I opened around 2014 (aka the worst possible time to start notes).
The dream with LC was 8-12% nominal annual returns with good cash flow. Of course the reality is that online platforms are great an loaning money, not so great at collecting it. Lesson learned. In the end I invested $9700 in the IRA and will probably roll over about $9000 to a Vanguard IRA. Back to index funds.
"So drink gamble eat f***, because one day you will be dust." -ontariodealer
March 31st, 2018 at 7:13:14 AM
permalink
That hasn't been my experience.
I chose mostly A &B rated loans and while the rates aren't the highest defaults are pretty low.
I chose mostly A &B rated loans and while the rates aren't the highest defaults are pretty low.
The difference between fiction and reality is that fiction is supposed to make sense.
March 31st, 2018 at 9:19:53 AM
permalink
I put some in LC about 18 months ago (6 more months before I can wash my hands of it!) and, assuming nothing else goes wrong, I've made just about 3% on it. Which is better than a savings account, but it was also during a massive boom in the market, which kind of stings. Somewhat irritatingly, I have a small pile of A/Bs that defaulted whereas none of my D/Es have. (Though I do have vastly more A/B.)
March 31st, 2018 at 9:43:00 AM
permalink
Ratesetter has a contingency fund, which, so far, has mitigated all defaults across the entire platform. I opted into a rolling market, from which I can liquidate my loans at 1 months notice (unless the market collapses) It's a modest interest rate, but has persisted between 2.7% and 4.5% over several years, with no major headaches. There have had a couple of platform outages, at which times I scrambled to get my money out ASAP. I've now restricted my balance there to what wouldn't hurt me too much.Quote: VenthusI put some in LC about 18 months ago (6 more months before I can wash my hands of it!) and, assuming nothing else goes wrong, I've made just about 3% on it. Which is better than a savings account, but it was also during a massive boom in the market, which kind of stings. Somewhat irritatingly, I have a small pile of A/Bs that defaulted whereas none of my D/Es have. (Though I do have vastly more A/B.)
Psalm 25:16
Turn to me and be gracious to me, for I am lonely and afflicted.
Proverbs 18:2
A fool finds no satisfaction in trying to understand, for he would rather express his own opinion.
March 31st, 2018 at 9:44:21 AM
permalink
It was okay, but I'm withdrawing most of the payments I get each month not reinvesting them. They do appear to over promise.
The difference between fiction and reality is that fiction is supposed to make sense.
March 31st, 2018 at 10:12:30 AM
permalink
That's EXTREMELY low for a title loan.
As you know, here in Ohio we have the highest payday loan rates in the nation. As high as 380% A.P.R. or more.
In Florida the max amount for a small dollar payday loan is $500 and the fee is 10%, flat. I actually think this is somewhat reasonable for the business they are in.
As you know, here in Ohio we have the highest payday loan rates in the nation. As high as 380% A.P.R. or more.
In Florida the max amount for a small dollar payday loan is $500 and the fee is 10%, flat. I actually think this is somewhat reasonable for the business they are in.
"Dice, verily, are armed with goads and driving-hooks, deceiving and tormenting, causing grievous woe." -Rig Veda 10.34.4
March 31st, 2018 at 10:42:00 AM
permalink
My apartment charges $115 late fee for rent, if you are five days late twice in a year. If you are going to be a week late, it's cheaper to get one of the loans.
Most of the loans are very short term so interest rates are paid for a short time. Get a $1000 loan at 84% interest and a two week loan costs you about $35. Try getting a bank to lend you $1000 for two weeks.
Most of the loans are very short term so interest rates are paid for a short time. Get a $1000 loan at 84% interest and a two week loan costs you about $35. Try getting a bank to lend you $1000 for two weeks.
The difference between fiction and reality is that fiction is supposed to make sense.
March 31st, 2018 at 11:18:59 AM
permalink
Quote: billryanMy apartment charges $115 late fee for rent, if you are five days late twice in a year. If you are going to be a week late, it's cheaper to get one of the loans.
If you are going to be a week late with your $1,000 rent, you are FAR FAR too financially illiquid, Possibly because of all the other times you muttered those immortal words 'It's only $35'
Not having a go at you personally Bill. It's just my lifetime policy to avoid interest bearing debt as far as possible.
84% apr is 84% apr. The sort of interest rate we just should never expose ourselves to as a lender. 'It's only $35' That way madness and poverty lie.
You wouldn't play a casino game with a 84% house edge, would you?
Some would.
Psalm 25:16
Turn to me and be gracious to me, for I am lonely and afflicted.
Proverbs 18:2
A fool finds no satisfaction in trying to understand, for he would rather express his own opinion.
March 31st, 2018 at 11:38:59 AM
permalink
I'm a believer in the philosophy of Harry Chapin and Dave Ramsey, and have never stepped foot in a pay day store. That said, I completely understand the service they provide. In cases of large late fees and if you car is about to be repo'd, they can be cheaper than the alternative. I'd much rather pay a $70 fee to a payday loan than pay the fees involved in getting your car repossessed.
Just because I'm a cash person who rarely charges anything and never carries a balance doesn't mean I can't see where these things help a sector of society.
It would be great if schools taught personal finance, but most people just aren't interested. The nearby church which offers Financial Peace University has openings in every class. People either don't care or are too embarrassed to talk about their lack of knowledge when it comes to this.
Just because I'm a cash person who rarely charges anything and never carries a balance doesn't mean I can't see where these things help a sector of society.
It would be great if schools taught personal finance, but most people just aren't interested. The nearby church which offers Financial Peace University has openings in every class. People either don't care or are too embarrassed to talk about their lack of knowledge when it comes to this.
The difference between fiction and reality is that fiction is supposed to make sense.
March 31st, 2018 at 3:55:26 PM
permalink
I didn't know that because I have been fortunate enough never to have had to use a Pay Day or Title loan site. It does seem crazy that they would proudly advertise a rate that to me seems like loan-sharking. Like I said, I am not their demographic, which is a GOOD thing.Quote: teddysThat's EXTREMELY low for a title loan.
There's emptiness behind their eyes
There's dust in all their hearts
They just want to steal us all and take us all apart
April 1st, 2018 at 4:58:51 PM
permalink
Quote: billryanThat hasn't been my experience.
I chose mostly A &B rated loans and while the rates aren't the highest defaults are pretty low.
The rates on the highly rated notes weren't enough to entice me vs. putting the money in the stock market. Especially given the lack of liquidity with LC notes.
Quote: VenthusI put some in LC about 18 months ago (6 more months before I can wash my hands of it!) and, assuming nothing else goes wrong, I've made just about 3% on it. Which is better than a savings account, but it was also during a massive boom in the market, which kind of stings. Somewhat irritatingly, I have a small pile of A/Bs that defaulted whereas none of my D/Es have. (Though I do have vastly more A/B.)
Sure better than a savings account, except with a savings account you can withdraw your money at any time. As noted above...the anti-liquidity is another big downside to LC that I was willing to accept if the returns were as initially promised. Given that I'm going to end up losing money...ugh.
"So drink gamble eat f***, because one day you will be dust." -ontariodealer
April 2nd, 2018 at 4:06:35 AM
permalink
Seems low considering the clientele and their credit ratings especially in 702
"Man Babes" #AxelFabulous
April 2nd, 2018 at 6:31:42 PM
permalink
Yep. I've been shifting money out of LC every month into my Robinhood account and having !!FUN!! with high volitility stocks instead. (Down 40% YTD... VIX and XIV aren't exactly paragons of stability, given what they are...) Totally liquid, compared to the w-year terms on LC, and you have far more control over it, for better or for worse. (No-commission brokerage, for the unfamiliar. Not sure if it's ever been discussed here.)
April 2nd, 2018 at 9:07:57 PM
permalink
Quote: TigerWuI want to start a payday loan company with the absolute lowest possible rates. Let's say 1%. That would put all the other payday loan companies out of business and everyone would come to me, and I would make tons of money even at 1%. Everybody wins. I'm amazed that no one has done this yet.
Okay, offer your services here. Call it a trial, see how many will borrow and will pay you back without defaulting.
April 3rd, 2018 at 1:41:46 AM
permalink
Watch Dirty Money S1 E2 (Payday Loans) on Netflix if you haven't seen it yet. I don't get angry very often or very easily but watching this guy and his wife trying to get viewers to sympathize with them made me pretty livid. Huge scumbags.
April 6th, 2018 at 7:50:56 PM
permalink
I would like a low interest loan. Is the fact that I have been a member here since 2009 and have never been suspended enough to vouch for my credit-worthiness ? ? ?Quote: VegasriderOkay, offer your services here. Call it a trial, see how many will borrow and will pay you back without defaulting.
There's emptiness behind their eyes
There's dust in all their hearts
They just want to steal us all and take us all apart
