Expert Q&A from Augusta University
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All Answers
What do you think it says about a lender when they don’t check applicants’ credit history? (1)
The lending entities that do not check applicants' credit histories basically provide a one-size-fits-all option. Meaning, that regardless of one's credit worthiness, all applicants will be charged a high enough rate to make it beneficial for the lending entity. This means that one should expect the interest rates that will be charged are in the predatory range. Also, many of these loans may require an applicant to provide collateral. The loan contracts for these lending entities are structured to ensure they [the lending entities] come out ahead, either by receiving extraordinarily high payments [due to the high interest being charged] or by taking ownership of the collateral once the applicant defaults. It is a win-win for the lending entity.
What advice do you have for someone looking for a no-credit-check loan? (1)
My advice to someone looking for a no-credit-check loan to run in the opposite direction. Under no circumstances should anyone look to obtain one of these loans unless they understand that they may become a potential victim of the vicious predatory borrowing/lending cycle.
Will consumers see an immediate impact from the closure of the Port of Baltimore after the bridge collpase? (1)
“First of all it’s going to take a while before we see any effect on certain things. The bad news for inflation is that it’s going to raise the cost of transportation for the goods coming off the ships. Will businesses absorb the cost or pass them along to consumers?”
The Port of Baltimore was the busiest for cars and light trucks coming from other parts of the world, how will the closure affect outbound goods from the port? (1)
“It’s not just the capacity of the port, that’s one thing, but it’s also their capacity of the outbound items. It may be more trucks are needed and new routes are needed to move inventory. It now becomes a whole different set of providers for the trucks because it’s no longer the people in Baltimore.”
How will the bridge collapse in Baltimore affect goods coming in and out of the port? (1)
“Most ports on the East Coast are at 70% to 80% capacity, which is where you want to be. You don’t want to have much more than that, but they’re going to have to,” said Franza. “It could affect a good bit of the eastern half of the United States.”
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