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LC rate was about 14% (average according to their terms) - they've since sent me mailers offering 8% or lower, not including the origination fee which was in the $400-500 range. This was on the 36-month loan that was paid off in 25 months so I'd have to do the math to tell you how much interest I actually paid.

Credit cards were 28.99% and 24.99%, so even with the origination fee quite a bit of savings.




Yikes - those interest rates are insane.


The interest rates on credit cards can go through the roof if they start regarding you as a default risk.


Is that a US thing? I have several credit cards, yet the interest rates tend to "only" be around 10-13% on them (not that I use the actual credit part -- I pay them off each month).


You think that's bad? Interest rates on credit cards here in Uruguay are insane if you don't pay them in full, from 42% to 99%. Inflation is about 10%, so they're ridiculously profitable.

Of course, like a good 3rd world country, we have massive defaults about once a decade, so that wipes out most of the profits for the CC companies.

A startup called TuTasa is trying to build a South American LendingClub, but I don't think they're taking off yet:

http://tutasa.com.uy/

One big difference is there's usually only one credit agency (it's Equifax here in Uruguay), and there's a lot more fraud going on than in the USA.

http://www.eltelegrafo.com/index.php?id=102900&seccion=local...


Note the "default risk" part of that. I had a credit card that was at a very reasonable interest rate, then due to a series of unfortunate events, I missed a payment.

The interest rate immediately shot up to >25%, and I was told it wouldn't come down for more than a year.




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