The average household owes $16k in credit card debt. That is $747B total. They pay an average of almost $1,300/yr of interest alone. Total personal debt of Americans is over $12 trillion. The average American has a FICO score at 695. For many Americans getting an LC loan is a step in the direction of rebuilding their credit score and saving themselves money.
Debt consolidation can save hundreds of dollars a month, just in interest alone for a lot of these people. You call them fringe, I call them typical Americans from all walks of life. Could they get better loans from Banks? Why are they not there and are here instead? A and B are definitely the safest, no disputing that, but there are also plenty G notes that are safe too.
On a personal note, I have 6 credit cards, not one of them under 22%. I would not care if they were all over 40%, I do not carry a balance. I have not asked for an APR reduction, just no need to. Do I consider myself on the fringe? I guess if having over 750 FICO, fringe.
Not many of my notes I buy on FOLIO are under C. But it is not the grade I care about its the YTM. Yes, it is because of the ANAR. My ANAR is killed by having so many A/B notes that were accidently bought when I opened my account.
What evidence is there that we lend on the fringe?
Come on...we are the last resort before payday loans. Now that banks are getting involved LC will be even more into the fringe. Banks will take the A-B and maybe C away.
I followed these threads in the past. Up until very recently a lot of you were buying e-f-g loans so you could get your ANAR sky high. Most of the time there were always A-B loans to be had. Don't tell me that someone borrowing at D (17%) E (23%) F (29%) G (30%) are not fringe. Who in their right mind would pay those ridiculously high rates unless they were on the fringe? The answer to that can only be those who have 20%+ credit card rates. These days, who do you think only qualifies for those high rates?