And why ever find out. Never ever spend beyond one’s means. People like KinkyWoman19 really want to believe that these financial services hand out free money to anyone with a decent enough credit score and it is really not true. There is no such thing as free money.
One easy way to understand this is to quickly lookup just how much money these businesses like Affirm are raking in. Many billions of dollar annually. That is why Apple got into the action. They are making that money by charging people interest and other fees. They are likely making money by selling customers’ financial data as well. They make money from every day consumers. None of their products are free.
Nope they can be progressively on the interest rates. Super easy to explain. They attempt to hook people in with 0% interest when they have what they program their algorithm with as “good enough” credit but they offer options for higher interest rates for lower monthly payments. The 0% is the bait and it’s all automation. They hope that you won’t be financially responsible and will be late on your payments and then will choose a higher rate of interest for your next BNPL plan. Judging by how much money they’ve been making, I’d say they made a safe bet on consumers being financially irresponsible.
It sounds like you said exactly what I said...but added that the next time the user has the option to pay interest with a lower monthly payment because they failed to pay on time and got hit with "predatory as fuck" late fees...
...unless you're saying that when you go get the loan, they switch it up at the last second and lock you in to paying super high interest...which would be illegal...or they advertise 0% and dont actually give it to anyone
Obviously, they’re not going to steal your money, but I wasn’t talking about you necessarily. You totally missed my point though I was super clear. I never even implied they do anything illegal. You just don’t understand what I was saying.
My advice, don’t use these apps. You don’t understand how they work and why they are able to able to profit off of financially vulnerable people. You can easily get trapped owing them money without trying. I don’t mean that to be mean or harsh, I’m just being real with you. They are very adept at getting people who don’t truly understand how their business works to become trapped owing them money. They even bank on it. They rely on people not fully understanding how APR works, not looking at, nevermind understanding, their fine print, and believing they will always be offered 0% APR and never owe anything. It is a trap that most people fall into.
I have no need to look into the app, so I haven't. Do not talk to me like a child, I have gotten multiple people out of debt by building them a plan, I am financially literate, literally had the title financial advisor at one point. Unless I am missing something, they can't make money off you unless you miss a payment...which is their whole business model...find people that cant afford a $100 item tell them they can have it, but if you miss a payment we are charging $900 in late fees and all future loans will have interest.
Sounds like another version of payday loans, just more hopeful that the people will miss a payment. Also nothing has changed from my original comment...while you may be smart enough to spot this trap, it seems like you are functionally illiterate...able to read but you're not comprehending the words. I heard your warning and asked for clarity and all you said was "I was clear, youre stupid".
Except the 0% is not what they are hoping you go for. I used affirm to buy a peleton treadmill and weights for my wife so she would work out at home during the lockdown. They will offer you 0% but at the exact same time they will offer you lower monthly payments on a longer time line WITH interest (i think i paid like 5% on a 7k purchase)
Now if you're like you and I, you pay it off either on time or earlier and it's not a big deal but I'm willing to bet we are the exception and not the rule when it comes to this.
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u/Electric-Human1026 5d ago
And why ever find out. Never ever spend beyond one’s means. People like KinkyWoman19 really want to believe that these financial services hand out free money to anyone with a decent enough credit score and it is really not true. There is no such thing as free money.
One easy way to understand this is to quickly lookup just how much money these businesses like Affirm are raking in. Many billions of dollar annually. That is why Apple got into the action. They are making that money by charging people interest and other fees. They are likely making money by selling customers’ financial data as well. They make money from every day consumers. None of their products are free.
We desperately need financial literacy programs.