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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 e
by mattwdelong 15y ago
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.
- dangrossman 15y agoInterest 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.
- pavelkaroukin 15y agoI 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.
- showerst 15y agoOP had a 3% _per month_ rate.
- mgkimsal 15y agoI'm betting that 3% was compounded monthly too, so the net effect would be higher than 36% - probably north of 40, but I can't be bothered to do the math.