Extremely competitve loan offer!!!
Discussion
Cpn Jack Spanner said:
Usually used to getting loan offers through the door, mostly offering an APR of between 15-28%. Things seem to have gone far worse than I thought with the bank problems...
And they say things are going to get worse!
Short term loans thats an ok rate. Your reaction is one of ignorance of APR's, and risk for the market providen work in.And they say things are going to get worse!
So if I lend someone £100 knowing he gets his monthly pay at the end of the week and he pays me back £120 am I being usuary? Without that he'd need to dip into his overdraft and that would cost him over £30. If that money means that he can get his car through the MOT and carry on getting to work then surely its a good deal all round.
Now for a mate I'd just hand over the cash without a charge, but for someone I didn't know well I think a charge of £20 is minimal.
but if that's a charge for half a week, what's the APR for that? its huge, maybe 2000%APR, but on a short term loan in the circumstances described it seems reasonable to me.
Now for a mate I'd just hand over the cash without a charge, but for someone I didn't know well I think a charge of £20 is minimal.
but if that's a charge for half a week, what's the APR for that? its huge, maybe 2000%APR, but on a short term loan in the circumstances described it seems reasonable to me.
So, it's a loan for the stupid? Seems easier just to put a few quid aside each week for a few months...
Then again, I am tempted! Let's see, they are willing to lend £500 - that's 500 Whole Pounds. Hmmm, with £500 I'd be able to fill all my cars with petrol (one of which easily swallows over £100's worth alone) including the one in America! And have change for, er, not a lot. Then I could drive somewhere - but not get back? Hmmm...
Han, I'll just get the money and blow it on cigarettes and drugs. Suppose I better start by taking up smoking then.
So, they are calling me 'high risk'??? Sounds like a clear case of defamation! Do I have a case?
Then again, I am tempted! Let's see, they are willing to lend £500 - that's 500 Whole Pounds. Hmmm, with £500 I'd be able to fill all my cars with petrol (one of which easily swallows over £100's worth alone) including the one in America! And have change for, er, not a lot. Then I could drive somewhere - but not get back? Hmmm...
Han, I'll just get the money and blow it on cigarettes and drugs. Suppose I better start by taking up smoking then.
So, they are calling me 'high risk'??? Sounds like a clear case of defamation! Do I have a case?
spikeyhead said:
So if I lend someone £100 knowing he gets his monthly pay at the end of the week and he pays me back £120 am I being usuary? Without that he'd need to dip into his overdraft and that would cost him over £30. If that money means that he can get his car through the MOT and carry on getting to work then surely its a good deal all round.
Now for a mate I'd just hand over the cash without a charge, but for someone I didn't know well I think a charge of £20 is minimal.
but if that's a charge for half a week, what's the APR for that? its huge, maybe 2000%APR, but on a short term loan in the circumstances described it seems reasonable to me.
You're right.Now for a mate I'd just hand over the cash without a charge, but for someone I didn't know well I think a charge of £20 is minimal.
but if that's a charge for half a week, what's the APR for that? its huge, maybe 2000%APR, but on a short term loan in the circumstances described it seems reasonable to me.
Lend someone £100 and expect £120 back, and the following APRs are implied:
over 1 week = 1310363%
over 2 weeks = 11348%
over 1 month = 970%
over 1 year = 20%
I'd say that given the paperwork involved in a loan arrangement an 'admin fee' of £20 isn't unreasonable, so the APRs are somewhat misleading.
:-)
Sidicks
sniff diesel said:
BERGS2 said:
437% APR!:-)
Sidicks
Gassing Station | The Pie & Piston Archive | Top of Page | What's New | My Stuff