What do you think about Bad credit loans?

[Benjamin12]

If you have the opportunity to borrow money without providing collateral or going through a credit check, then I believe that you should take advantage of that opportunity. There are a lot of people in this world who have poor credit and have a difficult time obtaining loans. The possibility of borrowing money without having to put up any collateral is a fantastic opportunity that should not be passed up. What do you think about this topic?

[Bufofrog]

If you have bad credit it is because you do not do a good job of paying off loans.   Giving a person with bad credit the opportunity to go deeper into debt is a really bad option.   What's worse is these types of loans typically have a very high interest rate.

[TheVat]

Ben, I hope you are keeping up your debt payments because if you miss one, the boss is sending Vinnie over to adjust your kneecaps.

[toucana]

1 hour ago, Benjamin12 said:

If you have the opportunity to borrow money without providing collateral or going through a credit check, then I believe that you should take advantage of that opportunity. There are a lot of people in this world who have poor credit and have a difficult time obtaining loans. The possibility of borrowing money without having to put up any collateral is a fantastic opportunity that should not be passed up. What do you think about this topic?

 

Extending easy loans to people with bad credit records has been likened to handing your credit card to a heroin addict - it’s unlikely to end well.

The most compelling example in recent history is the Subprime mortgage crisis which very nearly wrecked the world banking system in 2008. It began in the USA when the Bush administration dismantled statutory financial controls on the housing market. Lenders embarked on a highly predatory campaign of selling ARM (adjustable rate mortgages) to low income ‘Subprime’ customers - quite often without any form of background check, and using automated ‘No questions asked’ underwriting systems.

The lenders offset their financial liabilities by setting up parallel companies with separate books, and rolled the debts up into financial products called CLO (collateralised loan obligations) sold as bond issues with superficially highly attractive returns of up to 26% p.a. which were subject to only minimal appraisal by credit rating agencies - who were paid by the vendors to provide AAA+ ratings.

The gigantic flaw in this scheme was that it depended entirely on massive sums of money coming from the Subprime borrowers at the bottom of the heap, who were now being leveraged by the rapidly rising interest rates on their ‘adjustable rate mortgages’ (which only ever went up - not down). Many of these mortgage holders went into default. Without this income, the CLO bond issues began to fail catastrophically, and their failure in turn started to pull down the big monoline insurers who normally underwrite bond issues of this type.

Within a very short time, major banks and institutions went into a global panic, and they stopped lending money to each other, because none of them knew how badly each other was compromised by these bad debts. Several of them such as Lehman Bothers and Bear Stearns went bankrupt and collapsed altogether in 2008.

And that is the problem - Where does the bad debt go ? It is completely reckless to issue cheap loans to deadbeats, and just assume that someone else will pay them off when they default.

[zapatos]

2 hours ago, Benjamin12 said:

If you have the opportunity to borrow money without providing collateral or going through a credit check, then I believe that you should take advantage of that opportunity. There are a lot of people in this world who have poor credit and have a difficult time obtaining loans. The possibility of borrowing money without having to put up any collateral is a fantastic opportunity that should not be passed up. What do you think about this topic?

Gee, do you think you could give me the name of a company that will allow me to take advantage of this fantastic opportunity?

[exchemist]

10 minutes ago, zapatos said:

Gee, do you think you could give me the name of a company that will allow me to take advantage of this fantastic opportunity?

I think you've nailed it. 😁 

[Phi for All]

1 hour ago, zapatos said:

Gee, do you think you could give me the name of a company that will allow me to take advantage of this fantastic opportunity?

Ben put this in Book Talk, so maybe he's written a horror novel about the dangers of giving out bad credit loans? I'd call it Grizzly Bear Stearns.

[Sensei]

1 hour ago, zapatos said:

Gee, do you think you could give me the name of a company that will allow me to take advantage of this fantastic opportunity?

Mafia Inc. ....

 

3 hours ago, Benjamin12 said:

If you have the opportunity to borrow money without providing collateral or going through a credit check, then I believe that you should take advantage of that opportunity.

Depends on what you do with the money.

 

1) Consumption? Holidays (e.g. Christmas)? Vacations?

No, you should not take credit for any of these activities.. even if you can..

 

2) Investments? Possible. Depends on the details of what you want to invest in..

 

[TheVat]

5 hours ago, Phi for All said:

Ben put this in Book Talk, so maybe he's written a horror novel about the dangers of giving out bad credit loans? I'd call it Grizzly Bear Stearns.

  Loan Sharknado.

[Phi for All]

Harm A Loan.