For the last few years, credit has been pretty cheap. Most people can get that home improvement loan for well under ten percent, or the half-million dollar mortgage for a few points above prime. However, for those that are looking for a few more numbers in their loan agreements, Gary Coleman promotes an option.
Apparently, cashcall.com is offering loans from $1000 to $5000 with an interest rate of 99.25%, and Gary Coleman is their spokesperson.
Yes … 99.25% Oddly enough, I think it’s cheaper to borrow money from loan sharks and mobsters. I’m sure the local pimp would even hook you up with a little cash for less.
The scariest loan I’ve ever taken out was for 17.25%, and that was for a notebook computer back in 1999 when I was just establishing my credit. After paying off the computer in 12 months, the total amount charged in interest and finance fees came out to just over $700. At that point I vowed never to pay such a stupid amount of money on a $3000 loan ever again.
Personally, if I was desperate enough for money to warrant a 99.25% interest rate, I’d rather write the letters I-O-U on a napkin and deposit it into my bank’s ATM as though it was a real cheque. I could do this and then draw $5000 (in 20′s, of course) faster than I could ever apply for a loan. I bet the bank would even be nicer about the repayment schedule, too. They’d only demand blood 
Have you seen other loan companies offer something this ridiculous? Have you ever heard of people being desperate enough to use them?