Think Cash: A New Low in Short Term Loans

Think Cash: A New Low in Short Term Loans

They should be ashamed of themselves.

A few months back, I saw a commercial from Cash Call which offered short term loans to those with bad credit. The interest rate on these loans were about 99% (plus or minus a quarter point) which made the payments outrageous on the amount borrowed. It sparked quite a bit of discussion on that point - and is still one of the most popular posts I’ve done on this blog.

I read each of those comments and respond when appropriate; but today I saw another commercial that makes Cash Call look like saints. This loanshark reputable lender offers short term loans - much like Cash Call - but their maximum interest rate is a whopping 365%. No. That’s not a typo. 365%. On some loans, they do offer a relatively pallitable interest rate of 171%.  As per their site:

The Annual Percentage Rate (APR) for an example $1250.00 loan is 171.5% with 36 bi-weekly payments of $91.66.

I’ll whip out my handy dandy calculator to figure out the total debt. 36 payments at 91.66 equals $3300 (plus or minus a few bucks). So on a $1250 dollar loan; you have to come up with over 2.5 times the originally loan value in 18 months. If the people applying for these loans could come up with that much extra cash in such a short period of time, why would they need a loan in the first place? Think Cash should be ashamed! This, much like Cash Call, is just another in the continuing cycle of poverty that pushes people further and further down, making it nearly impossible to improve their situation. I’m all for capitalism and making money; but capitalism without morals is no better than Communism.

But it gets worse. I went to an online loan repayment calculator and figured out much you’d have to repay on a $2500 36 month loan at 365% interest. Ready? Are you sitting down? Here you go:

Loan Balance: $2,500.00
Adjusted Loan Balance: $2,500.00
Loan Interest Rate: 365.00%
Loan Fees: 0.00%
Loan Term: 3 years
Minimum Payment: $0.00

Monthly Loan Payment: $760.47
Number of Payments: 37

Cumulative Payments: $27,392.59
Total Interest Paid: $24,892.59

Absolutely stunning. I’m almost positive there is something wrong with the math here, but 365% interest - I guess - does add up rather quickly. Apply for this loan and kiss your future goodbye. 

As an added bonus, Think Cash also provides 12 handy dandy tips on how to get out of debt. Here’s my tip: Don’t get a loan from Think Cash. And, apparently as a joke, Think Cash is asking for referrals. Like their service? Win $50. And they also let you refer a friend - which, I assume, is a great way to make sure you have one less friend in the world - “Why, gee, thanks Bill. I’m glad you recommended this service to me. Now I’m stuck with a loan with a 365% interest rate. You rock!”

Even Gary Coleman wouldn’t attach his name to this service. I guess in a few months, we can look forward to Ultimate Cash - get $2,500 next day with a 500% interest rate. It really wouldn’t surprise me.

Update: Are paid bloggers being used to white wash this mess? Here Here Here Here - and more are easily findable from a google blog search. All of them talking about “Think Cash” - but not a single one mentions the absolutely horrendous interest rates. Wonder why? If you are a paid blogger; fine. That’s wonderful, but please have some respect for yourself and your blog and don’t endorse programs like this.


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  1. Ranee on November 20th, 2007

    If you are going to spout off like you know something how about educating yourself or at least reading our blog posts first? I happen to know tons of people who use these services due to the area I live in. It’s the only way some of them get by.

    Bloggers like you make me sick. At least I get paid.


  2. Tim on January 9th, 2008

    At least payday lenders like Think Cash, Check Into Cash and others show their customers upfront what the fee is per $100 borrowed.

    Try to get a bank or for that matter a bank branch employee to explain all the fees associated with a checking account. If the banks are trying to be fair and upfront, why do they hide all their fees?

    BTW - the federal government (at the banks and credit union urging) required payday lenders to post an APR (Annual Percentage Rate). However, reputable (there are a few) PDL will only allow up to 4 consecutive 2-week loans. So an APR is not applicable. It is only quoted by the ignorant and “well meaning” advocates of the poor!


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