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Post by bogdanworld on May 2, 2019 3:38:26 GMT
I dont understand what means BORROWER APR. Is better to be high (800%) or down (20%)? Someone can explain for me? Thank you
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benaj
Member of DD Central
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Post by benaj on May 2, 2019 8:54:56 GMT
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Post by hugoncosta on May 2, 2019 18:58:19 GMT
Regarding high APRs being good or not, well, depends. Payday loan companies have stupidly high interest rates to cover for the high rate of defaults. Installment loan companies have lower APRs, and, in theory, should also have lower default rates. The opposite can happen.
On a sidenote regarding high APR ones, such as Dinero, Metrokredit, they don't have the best practices when it comes to debt recovery. You can read their VK pages, they do all types of harassment to get the money. If you want to invest ethically, I'd avoid them.
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toffeeboy
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Post by toffeeboy on May 7, 2019 11:59:07 GMT
Regarding high APRs being good or not, well, depends. Payday loan companies have stupidly high interest rates to cover for the high rate of defaults. Installment loan companies have lower APRs, and, in theory, should also have lower default rates. The opposite can happen.
On a sidenote regarding high APR ones, such as Dinero, Metrokredit, they don't have the best practices when it comes to debt recovery. You can read their VK pages, they do all types of harassment to get the money. If you want to invest ethically, I'd avoid them.
You are comparing interest rates and APR's in your first sentence. Pay day loans tend to have high APR's because of the shortness of the loan, they can have the same interest rates as the installment companies and the same charges but because the loan is for 1 month the charges percentage is times by 12 to work out the yearly cost for the loan.
The cost of checking/reviewing a loan application doesn't change whether the loan is for a day or 100 years but the charge is split across that period.
As a note I hate pay day loans and think that they are poison aimed at the most needy of society with charges and interest rates that are too high and the sooner a full crackdown is done by government the better.
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