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ReaperAZ 05-15-2006 3:19 PM

High Risk Lenders?
 
Anyone here ever use one, need one, or know of a good one?

luvtolean 05-15-2006 3:20 PM

Re: High Risk Lenders?
 
The first loan I ever got was to buy my FZR600. I believe it was through American General. High interest, but they actually are decent otherwise, better than credit card cos.

Now older and wiser, there's not much I'd borrow high interest money for...I just don't need something so bad I'm willing to pay 18%+.




smoothrideronli 05-15-2006 3:34 PM

Re: High Risk Lenders?
 
I am not sure I if there is such a thing as a good high risk lender. The ones I had dealt with in the past including American General tend to want to sell you a bunch of other crap and include that in the monthly payment. Thank God my credit has gotten better.

luvtolean 05-15-2006 3:42 PM

Re: High Risk Lenders?
 
Oh yeah, they'll try to leverage the hell out of your info. I paid off the loan real quick, and for years afterwards they were spamming me.

I really liked the ability to walk into an office and talk to someone if I needed to, or to drop off a payment. Better people to deal with than say a credit card at a distance (who are normally awful with customer service IME).




sheepofblue 05-15-2006 3:47 PM

Re: High Risk Lenders?
 
Look for alternatives (including not getting the item)

ReaperAZ 05-15-2006 3:48 PM

Re: High Risk Lenders?
 
How quick did you pay it off LTL?

ReaperAZ 05-15-2006 3:48 PM

Re: High Risk Lenders?
 
Quote:

Originally Posted by smoothrideronli
I am not sure I if there is such a thing as a good high risk lender. The ones I had dealt with in the past including American General tend to want to sell you a bunch of other crap and include that in the monthly payment. Thank God my credit has gotten better.

What kind of "crap"?

luvtolean 05-15-2006 3:49 PM

Re: High Risk Lenders?
 
Man, that was a long time ago...I'd guess 6 months or so, maybe a bit more. The loan term was 2 years and was secured by my car stereo.

The benefit of that deal was if my system was stolen, it was insured by AG, a cost that was built into the interest rate on the loan (which made it not too bad...).

It really helped me credit wise too.




smoothrideronli 05-15-2006 4:13 PM

Re: High Risk Lenders?
 
Quote:

Originally Posted by ReaperAZ
What kind of "crap"?

Mostly insurance...I was exaggerating a bit when I said all kinds...and then they spam you with a bunch of offers every other day...also the interest rate can be as bad as %25.

BDA116 05-15-2006 4:42 PM

Re: High Risk Lenders?
 
In general they are good to stay away from, and that is about it.
However, if you are in a situation where you need to build your credit so you don't have to use one in the future, make sure you go with one that at the very minimun reports to the three credit agencies, otherwise you are wasting money.
Paying them off quick is the best bet, but always give any credit line six months on the books minimum.
If you get the loan, check around with banks and credit unions after six months and you should at least get a better rate.

ReaperAZ 05-15-2006 4:49 PM

Re: High Risk Lenders?
 
Quote:

Originally Posted by BDA116
In general they are good to stay away from, and that is about it.
However, if you are in a situation where you need to build your credit so you don't have to use one in the future, make sure you go with one that at the very minimun reports to the three credit agencies, otherwise you are wasting money.
Paying them off quick is the best bet, but always give any credit line six months on the books minimum.
If you get the loan, check around with banks and credit unions after six months and you should at least get a better rate.

Ding, ding, ding, that's me. Need to build my credit back up.

Silent_Assassin 05-15-2006 4:53 PM

Re: High Risk Lenders?
 
When I 1st began to establish my credit, I too had a loan through American General. I did'nt have bad credit, I just did'nt have any. :crap: The interest rates were high, 20+ something %. LTL is correct. They will offer you all kinds of insurances for job loss, collaterall loss, disability, etc. They just figure the insurances,etc. all into the total monthly payment. My situation was I needed money quick and had no options other than going through a high risk lender. My 1st loan was for $3000.oo for 24 months. 9 months into it I needed more money.... :( Used my car, a 1986 Escort GT and my home stereo as collateral and was still at my same job, so things looked good. Got another $2000.oo and had both loans from AG wrapped up into 1. A few months down the road realized the debt I was in, worked my ass off and paid AG off in about 12 months. Never wanted to be in that kind of financial trouble again. It taught me a good lesson though. I now have so much credit, but with respect for having it also, that I never have to go through anything like that ever again. After my loan was paid off, they sent me stuff for probably 2-3 years on a weekly basis. If your in a pinch and have a job with no other option, than a high risk lender is an easy ordeal. Usually get the money pretty quick and hassle-free. I dont know your specific reasons for needing this, nor am I asking either, but just figured I would share mine. There are more options available now then at the time I went with American General. About 12 years ago. Just be cautious and make sure that you really do NEED the money before you start signing away. Good Luck Reaper.

luvtolean 05-15-2006 5:06 PM

Re: High Risk Lenders?
 
I didn't opt for the ins on my collateral, it was part of the deal.

But I fully agree with your post SA. It's thin ice, and you have to be careful when you venture out there that you have a way to get off quick.




BDA116 05-15-2006 5:10 PM

Re: High Risk Lenders?
 
Quote:

Originally Posted by ReaperAZ
Ding, ding, ding, that's me. Need to build my credit back up.

If you are just trying to rebuild the credit and nothing more (as in not needing the loan to buy something like a depreciating asset) then get a small loan (~$2000) and put it in a 6 month CD with your bank/CU. Make your payments each month, then after six months when the CD matures pay the loan off. Get a second loan at a better rate and do the same thing.
Rebuilding your credit is all about timely payments and time on laon books.

If you need to buy something then still keep it as small as possible and check lenders every six months to refi at a better rate.

But the first option is the best. You won't be making any money off it, but you will be establishing yourself and keeping your losses in check.

phobiaphobe 05-15-2006 5:21 PM

Re: High Risk Lenders?
 
If the loan is for a car or any other depreciating asset, make damn sure that you plan to keep the car until the last payment is made. You will always owe more than the asset is worth. :twocents:


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