ix21@sdccs6.UUCP (03/10/84)
(RAID)
This is a repost of a previous article that was partially eaten up
by the news bug. I revised the article considerably.
I have received several of these offers with APR's varying from
19.5% to 24% compounded monthly which is quite steep for any type of
loan. I have also received several offers for credit cards with
guarranteed no refusal. These cards have the most atrocious annual
fees. While I have not taken advantage of them I had a friend that
took advantage of the loan. When he payed it back the line of credit
still appeared on his credit record after he payed off the loan.
He borrowed $5000, after paying it back, he received a letter
saying with some "checks" saying that he can write himself a loan check
at any time at some ridiculous variable interest rate. Later when he
applied for a 2nd credit card with another firm. The potential loan
was still on his credit record. Which prevented him from getting the
credit card. The record said line of credit $5000, $0 balance. The
2nd credit card company stated in correspondence that event though the
loan was fully paid it represented too much unsecured credit for his
salary. The bureau refused to remove the line of credit from the
record; because it was totally accurate. He was not even allowed to
place his own statement of facts in the record which is a right a
person has if the credit bureau facts are incorrect; this time they
were correct. The original loan company refused to drop the line of
credit; their reply was to offer him a credit card with a $30 annual
fee and 21% APR. The 2nd cheaper company offered $15 and 19.8%.
I recommend that if you consider that if you take advantage of a
loan offer by mail that you may be trapped into staying with that
company for a long time.
--
David Whiteman sdcsvax!sdccs6!whiteman
UCSD Medical School, La Jolla CA
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