Quote:
Originally Posted by Detector  I just don't get the logic?
If a person is a higher risk, then by all means keep their limit low, which is what they do. What I don't get is why would they expect a higher risk person to pay $10,000 for a car others pay $5,000 for? They lower their credit limit but raise the interest rate to make them end up paying far more than their limit.
Example: They won't sell you a $10,000 car because your credit is bad, but they will sell you a $5,000 car that with interest you will end up paying $12,000 for.
I honestly think it has far less to do with being a higher risk, and much more about taking advantage of a situation. | OR...you could save enough money to make a down payment on that 5000 car that you won't have to pay a high interest rate.
I believe they charge people more interest to protect their risk of loaning that person the money.
__________________
LIBERALISM
The haunting fear someone, somewhere can help themselves.
"Over the last fifteen months, we’ve traveled to every corner of the United States. I’ve now been in 57 states..."
Barack Obama |