testosteronepit.com / Wolf Richter / JUNE 27, 2014 AT 1:25AM
During the first quarter, 3.7 million credit
cards were issued to subprime borrowers, up a head-scratching 39% from a
year earlier, and the most since 2008. A third of all cards issued were
subprime, also the most since 2008, according to Equifax. That was the
glorious year when “subprime” transitioned from industry jargon to
common word. It had become an essential component of the Financial
Crisis.
As before, subprime borrowers pay usurious
rates. These are people who think they have no other options, or who
have trouble reading the promo details, or who simply don’t care as long
as they get the money. In the first quarter, the average rate
was 21.1%, up from 20.2% a year ago, while prime borrowers paid an
average of 12.9% on their credit cards, and while banks that are lending
them the money paid nearly 0%.
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