KEEPING YOU 720 CREDIT READY
- Predatory lenders are like the devil — they legally charge you insanely high interest rates that keep tens of millions of Americans in a vicious financial trap.
Who Can Fall Victim to a Predatory Lender?
- Anyone can, however it is very common to happen to families making less than $50,000 a year.
- The most common victims of predatory lenders are people living without a credit score — 45 million Americans are considered credit invisible according to the CFPB.
- The next largest segment of Americans affected are those living with marginal credit scores under 620.
- It's also very common for these predatory lenders to have retail locations in neighborhoods where families live in subsidized housing.
The Predatory Lenders You Should Avoid at All Costs
- Check Cashing Stores — APRs as high as 700%.
- Buy Here Pay Here Car Lots — focus on people with no credit and have a 33% repossession rate; the business model is sell, repo and resell. Rinse and repeat!
- PayDay Loan Stores — APRs up to 300%.
- Rent-to-Own Furniture Stores — you end up paying 300% more for a TV or sofa.
- Online stores like FingerHut — 200% more than Target for the same item.
- Title Loan Stores — in Alabama, title loan interest can reach 25% per month on principal, an APR around 300%.
- Personal Loan Stores ("Need cash for Christmas?") — APRs for cash advances in Tennessee can reach 279%.
- Never get an auto loan at the car dealer — they will broker you to dozens of lenders and your credit score will take a huge hit from credit inquiries.
- Go to your local credit union and get a car loan at a good rate with no down payment.
- [The live page also offers a downloadable predatory-lenders guide PDF and a social share widget here — not yet migrated to this site's own storage.]