3 ms·

It's crazy to see the interest rates we've come to accept as a society considering that "interest" (otherwise known as "usury") has been considered illegal in m

• imtringued 7y ago
  That's a perfectly reasonable interest rate. Imagine you borrow $1000 at an APR of 15% and for some reason decide to only pay $22 per month. You have 68 months to pay the full amount back until you pay $500 in interest. If you had decided to pay $100 per month you'd pay $75 in interest in total. Meanwhile payday lenders will let you borrow $1000 for 3 months. You have to pay back $500 each month and if you can't pay it off within three months you will have to pay additional fees. That is basically a 500% APR. There is no need to hate credit card companies. They are doing a perfectly fine job. They obviously have higher rates than regular loans simply because buying something with your credit card doesn't require approval from the company. When you apply for a regular loan it is often tied to a specific purchase that can be repossessed or directly increases your income and therefore ability to repay the loan.