Bill consolidation loans.

[Looneybomber]

I just got one of these things in the mail and I opened it for the hell of it. Some of the examples they gave me are crazy!

Credit card: 12k @ 21%
Auto Loan:: 15k @ 8%
Home improvement loan: 23k@10%
Current Mortgage 166k@8%

...And with their loan, you could save $1,108/mo. Wowee!

Seriously though, who has rates that high!? 8% home loan? Rates haven't been that high in over a decade. I think everyone and their brother refinanced by now. And 8% Auto loan? Get with a credit union and get 1-1.5%.

[Bubba1]

Who has rates that high? People with awful credit. For example, my neighbor had declared bankruptcy and later, when he tried to replace his car by financing it, he had a hard time getting a decent interest rate.

[gwoods]

I have a 6% loan on my house, I refied into two loans a 15 and a 20 year in 2009 and make an extra payment or two every year. I have about 6 -7 years left depending on how many extra payments I make and will own my house. Refi doesn't make much sense.

I don't think your 1-1.5% autoloan rate exists except as a lure from new car dealers where the manufacturer is also a bank Toyota/Toyota Financial Services for example.

[Dattebayo]

Used auto loans are pretty high IIRC. I had to talk my credit union down to 7% when I was really young...

[Looneybomber]

I don't think your 1-1.5% autoloan rate exists except as a lure from new car dealers where the manufacturer is also a bank Toyota/Toyota Financial Services for example.

Pentagon credit union had some really good used car rates for a while. I checked them again and they're,

1.99% APR* up to 60 months
Loan amounts up to $100,000

*Internet only special rate. Higher rate will be assessed if you do not apply online.2.49% APR applies to new vehicle loan amounts up to $100,000 financed for 61-72 months.

My house loan is 4.125%, I had an auto loan around 5% from Capital One back in '08 and another just over 4% with a credit union from back in '04. I was 21 then. Maybe midwest rates are different then other parts?

Who has rates that high? People with awful credit. For example, my neighbor had declared bankruptcy and later, when he tried to replace his car by financing it, he had a hard time getting a decent interest rate.

My sister has bad credit but didn't declare bankruptcy. Her rates aren't great, but she was still able to get in a new versa. I wonder how bad a bankruptcy messes up your credit?

[Bubba1]

My sister has bad credit but didn't declare bankruptcy. Her rates aren't great, but she was still able to get in a new versa. I wonder how bad a bankruptcy messes up your credit?

Think of it this way, if you were a lending institution and your applicant walked away from paying his/her debts by declaring bankruptcy, would you offer him/her a loan at your best rate?

[elwesso]

My sister has bad credit but didn't declare bankruptcy. Her rates aren't great, but she was still able to get in a new versa. I wonder how bad a bankruptcy messes up your credit?

Think of it this way, if you were a lending institution and your applicant walked away from paying his/her debts by declaring bankruptcy, would you offer him/her a loan at your best rate?

The way credit scores work it wouldn't surprise me. I tried to get a *credit card* about a year ago and I had a heck of time getting one of those. I'd never had a loan of any kind, but I had more money in my bank account than many people make in a year.

[Looneybomber]

Think of it this way, if you were a lending institution and your applicant walked away from paying his/her debts by declaring bankruptcy, would you offer him/her a loan at your best rate?

Yeah but I was thinking aloud - how many points or % would it drop. After some searching, there's nothing conclusive. But, you can find numerous websites promising a credit score fix after filing.

The way credit scores work it wouldn't surprise me. I tried to get a *credit card* about a year ago and I had a heck of time getting one of those. I'd never had a loan of any kind, but I had more money in my bank account than many people make in a year.

Dave Ramsey would be proud!

Luckily, my mom got me a credit card when I was 16 (she co-signed in order for me to get it) in order to start building credit. It had a $3-500 limit, so it was impossible to get yourself in trouble but I rarely used it. I had good credit by 21. I'll do the same for my boys when they get 16-17.

[PapaSmurf2k3]

My credit is so damn good, I'm absolutely not sweating paying the thieving bastards at Comcast the 2 past months of "service" after I cancelled. They also think I have their modem.

True story- they hired an equipment recovery agency to try to get it from me. I explained they never gave me a modem (self provided) and then tried to hire them "to recover some equipment from Comcast that I never gave them". Even claimed I'd pay them double what comcast was paying them haha.

[Looneybomber]

Huh? I've never dealt with comcast.

[PapaSmurf2k3]

Its a long story.

They jacked up my internet rate for no reason, I did a speed check and was only getting like 5mbps, but they were charging me for 50. I basically said I'm not paying the increased rate nor the rate for the 50mbps unless that's what they provided. They failed to do so, so I'm not paying them.

Basically now its being sent to a collection agency, but my credit is so freaking good I really don't care what they do. Technically it will be a ding on my credit score, but who cares if its still over 800.

[frapjap]

Dont you have a bill or original statement saying that you didn't take a modem from them and that the monthly fee wasn't assessed?
As for the 'service,' eventually the collections company will offer you to settle the debt after a year or so. Alternatively, you can offer to pay the amount of your previous bill, minus their increased charge, since thats the service you were actually receiving. Whats the amount for? $200-ish?

[PapaSmurf2k3]

Under 200. And yes, I've never been charged for a modem.

My claim is that they actually owe ME money for charging me for a service they were not providing for so long. That's what I'll tell whoever comes knocking, if its ever a real human instead of some dumbass robot.

[Looneybomber]

Well if this goes south, you may just want a Bill/Debt consolidation loan to cover that $200, plus another $45k for a Ford Raptor.