I got a loan offer in the mail today (snail mail, not email), which isn’t that unusual, we get a lot of credit offers around here. But this one in particular caught my eye and made me do a double and triple take and then read the whole thing.
The company who sent the offer was offering a loan at 96% APR. No, you didn’t read that wrong. I thought I had, so I held the paper really close. Then I thought it was a typo, but I flipped it over and there it was, written again. 96%. And then I looked at the payment schedule and cringed. Borrow $1000 for the bargain price of repayments in the amount of almost $87 for 36 months. Go ahead, do the math. I’ll wait here.
I KNOW! That’s what I said. Seriously? Who’s so desperate for $1000 that they’ll go for 96% APR?