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"Let’s go out on a limb and assume that the median full-time uberX driver doesn’t have fantastic credit and would rather forego the credit check." A paragraph
by al2o3cr 12y ago
"Let’s go out on a limb and assume that the median full-time uberX driver doesn’t have fantastic credit and would rather forego the credit check."
A paragraph later:
"Meanwhile, a trip to bankrate.com will reveal that today’s market rate for a 48-month loan is under 3%"
Not that it invalidates the piece, but this bit of handwaving bugs the heck outta me.
The under 3% loans are available to people with "excellent credit", which it was just assumed didn't describe UberX drivers. myfico.com indicates, for instance, that people with a FICO score under 620 are looking at a rate more like 10-15%.
- ryanobjc 12y agoHe was using this to point out the discrepancy between the lease rate from Uber's pre-selected finance company (15%) and the best possible rate one could get - 3%. It's just to illustrate the range of finances, and note that the finance company is literally charging 5x! In terms of credit, yes, better credit helps, but also since it's a secured loan, it's not like a credit card.