Well, I asked
November 9, 2008 | Uncategorized | Comments (0)A regular reader Jon Schultz crunched the numbers on the credit union product detailed in the article below this post:
For a two-week $100 loan the APR would be about 403%. For a $300 loan the APR would be around 143% (but of course someone who only needed an extra $100 would save money by choosing 403% over 143%).
What the article doesn’t say is whether people have to meet certain criteria to become a member of the credit union and whether all members automatically qualify for the loans, i.e. even if they are currently unemployed or don’t earn very much money. Some so-called payday-loan alternatives are more restrictive than the average payday loan so they can be made at a lower APR because the clientele is less likely to default. But that doesn’t mean the people who are shut out do not need or would not benefit from a loan.
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