What's shocking is that this is getting very little news coverage.
The only actionable bit is if you're going to get one, get it before rates go up.
You don't need bad credit to get that rate. Collateral will help lower your rate in most cases. But interest rates for this product in general should go up regardless of credit score. Credit cards are an alternative for loans without collateral, but they're usually fixed against some rate such as Prime. They should still be high.
Has no direct impact on my family but those loans are clearly venturing into payday loan territory with those interest rates.
But you would probably need pretty bad or no credit for this type of loan to even be an option. Someone with good credit can get a signature loan at their local credit union for less than 1/3 that rate. There are low rate credit cards designed to carry a balance for about 1/3 of that. If it is a one-time need you can even get a new 0% card or do a balance transfer to an existing card, preferably one with no balance, that would be single digit interest.
Really? That would be a terrible idea. Can’t imagine anyone borrowing money for a vacation.
Apparently it happens, according to many posts on these boards over the years. Someone said they raided their 401K to pay.
I would certainly hope that people are smarter than that and wouldn’t take out a loan with 36% interest to fund a vacation. If they do, they are probably making all kinds of bad decisions in life.
So many vacations are put on credit cards.
The reality is that Disney vacations are out of reach for a lot of people, so some will take out these high interest loans for a YOLO trip. And I’m sure they’re making other bad financial decisions too. But this happens.
I was thinking the same
Utah is the loan shark capital of the country.
