ForumsFinancing Tips

There are so many payday lenders because it's a profitable enterprise. No, big banks are not directly behind their proliferation -- but because big banks must obey a more stringent set of federal regulations and follow a more conservative set of lending guidelines, it indirectly allows more private lending operations to exist and fill a consumer demand. Yes, I suppose you could say they are a "dealer" of sorts -- supplying their "junkies" with money instead of drugs, and keeping them "hooked." In 2006, the U.S. Department of Defense defined them as "predatory." Not only had they kept service members from qualifying for traditional loans, they had jeopardized security clearances and deployments, as well.

Follow the money. There are so many payday lenders because they make BIG PROFITS on short term loans.

A payday loan is a small, short-term loan
that is intended to cover a borrower's expenses until the next
payday. Typical loans are between $100 and $500, on a two-week term and
have interest rates in the range of 390 percent
to 900 percent (annualized).

You could make 400% on your money legally. Become a payday lender. LUCKIEST

CC08, Up to 900. Anytime you want to form a partnership, I am ready. How many partners?
LUCKIEST

nobody is blaming anyone, why is it someone raises a question about something in this country which is morally wrong you are either complaining or out of line. if i was in position to give my life for this country my most precious commodity i would be expected to do so without reservation yet i cannot get a loan for 5.00 because my credit score is to low, please explain that. believe me, before it is all said and done people like you will know what it is like to need a hand up only to be told get away from me, just remember you heard it from me.

Ray, Why did you post two replies??
Where are you going with " nobody is blaming anyone, why is it someone raises a question about
something in this country which is morally wrong you are either
complaining or out of line"
Sounds you are campaigning or running for PRES.
LUCKIEST.

Ray,

No need to get snippy. I understand what you mean about getting access to funds. However you can't blame a financial institution for not taking a risk on someone with a low credit score. Banks are in business to make money, just like everyone on this board who owns a business. I would not extend credit to someone whose history says that have a problem paying, so why should you ask a bank to do so?

People on this board are generally here to help, so there is no reason to get frustrated with anyone over an inability to qualify for a loan. You need to work on getting your credit SCORE higher, and there is a pretty good article on the site about life after bankruptcy which gives tips on how to raise a credit score, but it takes time.

For someone in your position, a loan might not be the right thing at this point. You likely will need an investor, who you feel comfortable sharing your idea and sharing profits with. There are VC's, Angel investors, all sorts of folks who would be willing to give you money to support a GOOD idea that could make them more money. But blaming banks or anyone else who won't give you a loan because of a low credit score is counter productive.

As DD and Ed have clearly stated, banks are nothing more than businesses. As a business, they have the right to do business with who they want or don't want to. They are regulated by the federal government only in that they provide fair practices among all people that walk into their facilities. Their lending does not bend for one person and not the other. They are following the same set of credit policies for everyone.

CC08