Is it better for them to just not have access to credit?
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Iām not a finance person, so this is a genuine question: why is it not profitable to lend at 2% but is profitable to lend at 26%, if the person doesnāt pay regardless?
If they usually donāt pay, does it make a difference? Again, genuine question.
Am I supposed to be outraged and demand congress DO SOMETHING??!?!?
If people are stupid, theyāre stupid. There shouldnāt be a law against that.
Look on the bright side. That sucker paying 26% allows people here to walk away with killer deals. They subsidize us. So keep it going suckers.
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And theyāre all wrong.
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The goal isnāt to make every single loan profitable, itās to have a portfolio that makes money overall.
A lender doesnāt know which of the consumers with, say, 520-580 credit scores will default, but they know pretty close to what percentage will.
The goal is to set pricing for a given risk profile so that overall the portfolio provides a target return after factoring in all of the profits and all of the losses.
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Itās not profit on an individual loan. Itās profit on a group of loans.
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A Watch of The Big Short can explain this in an entertaining way.
So it is, in essence, āactuarialization?ā
Finance 101 textbook would as well 
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They finally are starting it, but itās youtube videos they use 
One manās predatory lending is another manās risk-based pricing.
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My point was lost. The people that ānurseā the dying canāt do basic math. Thatās comforting. Their job has plenty of math fyi if you know anything about charting in healthcare.
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I love these once a month āfeel badā stories from the press. It only helps the libertarian cause more. Here.
In the ārealā world it fuels the proverbial fire.
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Itās like ājournalistsā spin the wheel on who to profile.
This month itās a single mom with 2 jobs who is paying 26% interest on a car loan. How mean!!
Next month itās a recent immigrant who got Covid 3 times that had to endure a 70% increase in rent. How mean!!
Month after thatā¦spin the wheel and see who we have as your victim.
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Victimhood olympics.
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30 year fixed rate mortgage(even for investment unit) probably only exists in the US, and for foreigner as I, Iām really jealous, so I joined last year 2.5% fixed 30years, I will never payoff that loan really, itās money on the table, only thing I regret is I didnāt buy another investment unit. 
Yes, it is really getting old pretending like people had guns put to their heads when making decisions. It is not the place of the state to regulate transactions between to willing parties.
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Thatās why I deleted my post (b/c it wasnāt addressing your point).
But, at any rate, Iām a physician. So, yeah, Iām pretty familiar w/ charting. And while itās been many yrs since Iāve had to review a nurseās chart, I actually donāt recall there being a lot of math in that part of the chart (at least in terms of what the LVNs were charting) outside of a step-down/ICU setting. RNs, yes, they need to be good at math. But LVNs donāt do nearly as much (AFAIK).
I think pharmacists (of which youāre apparently one) do way more math than do (did) I or a nurse.
Not sure if the disparity is b/c of possibly varying state regulations or even just something that is hospital-specific.
Well, I guess thatās my point, though. I mean, the arguments used to justify calling it simply risk-based as just as circular (more so, AFAIK) than the ones used to justify calling it predatory.
I mean, if you make $ off of it, more power to you (generic you, not you specifically). But letās not fool ourselves about what this is. (edit: from the little Iām seeing, CA state might be more restrictive in terms of what LVNs can do, vs. other states)
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Credit card rate should mean nothing to you, if you need money, consider personal loan.
Credit card is a debit card that with cash back and benefits, thatās all. Never carry any balance on a credit card. I think this should be Chapter One in finance 101.
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