Wednesday, August 8, 2007

Adventures in Sub-Prime Lending.

You may have heard that there is instability in the financial markets recently. This is NOT due to a government that has run up a massive deficit in the space of six years, spending untold billions to mismanage a war of choice while showing incredible ineptness going after the people who actually did us wrong six Septembers ago. NO! That isn't it! You're a wacky loonie if you think that's it!

The problem is sub-prime lending! Lending money to people who are bad risks, people REAL financial institutions would avoid like the plague! The problem is NOT spendthrift Republicans in Washington, quietly laying off more and more of the burden of the federal budget on working people making less that $100,000 a year. The problem is Gary Coleman and those goddamn payday loans! You know I'm right. I'm using exclamation points, for chrissakes!

I am become Gary Coleman, destroyer of worlds!

Well, the sub-prime market is a large and growing field, and I myself am a part of it. After a bankruptcy in the early 1990's, I decided not to have a credit card until last year, and when I went back into the market, the only company who would take the risk was Capital One. Even my own bank, which had years of information about me paying my bills and not having overdrafts wasn't willing to give me a card, even though they sent me junk mail saying they would give me a card about once a month.

So I have had a credit card for a year or so. Yay! I get to rent a car when I need one and buy stuff online. Yay, iTunes! But Capital One is making a tiny change to my fees. It's $15 if I'm late with a payment if I keep a balance under $100. The late fee jumps to $29 if my balance is between $100 and $250, and $39 if my balance is over $250. One screw-up by the Postal System can cost me $15 even if I pay down my account every damn month. Over the credit limit or a returned payment? Both of those are $39 as well.

What's in your wallet? If it's a Capital One card, you are getting hosed big time, just like your pal Matty Boy, who is always happy to 'splain stuff 2 U.


Jess Wundrun said...

Set up automatic monthly payments online that at least cover your minimum for at least a year ahead.

My BankOne Visa likes to change the monthly due date as though it were a moveable feast so I make their payday a few days ahead of the usual.

Then add to the minimum what you will.

Matty Boy said...

I'm a little nervous about automatic online payments. Probably nothing to worry about, but given that my computer has been knocked out by spyware, my nervousness may not actually be paranoia.

Thanks to my roommate Art for letting me use his computer to run the blog during the interim, which hopefully will be over this afternoon.

dguzman said...

Gee, you know how when you have sex with someone, you're really having sex with everyone that person's had sex with? You and I have now had sex via our mutual acquaintances, bankruptcy and CapitalOne. Bitches.

Dr. Monkey Von Monkerstein said...

I had a Capital One card for about 5 minutes. I hated them and I tranfered the balance and then cancelled the card.

Matty Boy said...

Sadly, dguzman, our relationship is about as intimate as I get nowadays.

Don't cry for me, Ike and Tina.