Subprime Crisis And Consumer Credit
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Subprime and the Subsequent Crash
Subprime loans are literally sub-prime. It's a level below "Prime" loans.
Poor customers tend to have poor credit history. Commercial banks won't lend money to these customers. When these credit-risk customers want to buy houses, only subprime lenders are willing to give loans to them at obscene interest rates. Sometimes, these rates are as high as 22%.
Good credit customers can get mortgage loans for 5 - 7%. Poor credit customers will become poorer if they keep paying 22% to the loan sharks, Read More...
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Subprime vs. Secured Credit Cards
If you’re credit score has plummeted recently, you will find that it is extremely difficult, although definitely not impossible to get a credit card.
It can be done, just expect to pay colossal amounts in fees and monthly charges.
The thing with getting a credit card with a bad score is that the industry thrives upon these people, so desperate to get a line of credit that they will overlook the horrible terms and conditions of these credit cards that often times just make their financial situa Read More...
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Credit Counseling At A Glance
Credit Counselors helps the consumer manage out of control debt thru discipline. The consumer pays a certain amount of money to the Credit Counselors. In return, the Credit Counselors pays the creditors of the consumers for them. The Independent and Non-profit Credit Counselors are two types of Credit Counselors. They offer the same service. The difference is how they get their funding. The banks, credit card companies, and department stores usually give funding to the Non-profit Credit Counselo Read More...
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