Mastercard and Ally Financial Teaming up on POS Installment Lending Program

[Anonymous]

https://www.fool.com/investing/2020/08/25/mastercard-and-ally-financial-teaming-up-on-instal/

Under the terms of the Mastercard arrangement, Ally will offer a range of financing options to consumers making purchases ranging from $500 to $40,000. Terms will range from six to 60 months, at interest rates between 9.99% and 26.99%.

"Together, our partnership gives merchants, who want to offer consumers trusted and stable installment loan options, a powerful, digital option," the bank quoted the head of Ally Lending, Hans Zandhauis, as saying.

[Anonymous]

Those interest rates... 

[M_Smart007]

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@Anonymous wrote:

Those interest rates... 

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$40K @ 26.99% .. bargain

[Anonymous]

This seems like a middle ground between "micro loans" where interest is easily 30-50% and credit card balances held @ 29% or less (usually between 17-24% for those carrying balances).

i think instead of finding ways for Americans to pay for items because they're unable to at their current wages/saving habit.

they should work on increasing the wages/teaching better savings habit so products like this doesn't need to exist.