In todays’ “buy now pay later” climate, having bad credit has become increasingly common. In fact, the Institute for Policy Studies estimates that about 1.5 million people in the United States file for bankruptcy each year. With rising inflation at an average of almost 5% and the average workers annual raise at around 3.7% for many, offers that say “no credit no problem” are hard to resist. The public is inundated with these offers on cars, computers, personal pay day loans, and until the recent mortgage industry bust even home mortgages. Bad credit! no credit ! bankruptcy! the commercial ads scream we can help you! But you have to ask your self why? Why would any business take such a risk and possibly lose money? After all isn’t a business created to make money> Of course it is and that’s just what these companies are doing. Nothing my friend is free. The interest rates and amount of payments is sky high, higher than some of your worst credit card deals. It has been implied that some car dealers bank on consumers with bad credit to pay and struggle for a few months so that they can then repossess the vehicle and re sell it to another person without any credit or bad credit thus making way more profit than what the car may have ever been worth. Pay day loans often have an APR from 300 to 500% and pay day loans on line often state their fees in dollar amounts versus percentages. Most of these personal loans don’t require a credit check and of course since they are taking a risk by not checking your credit they charge a high fee to most likely cover their losses. So while no credit no problem is a scam …you can only be scammed if you let them . So please do your homework before you sign on the dotted line!