Legal Question in Credit and Debt Law in Wisconsin

Re: High intrest rates

Unfortunately, higher rates for those with blemished credit are inevitable. The rates are higher in order to provide "insurance" against loss to the lender by default by borrowers deemed more likely to default due to their credit history. Within the limits of usury laws, this upcharge is a perfectly legal reflection of the free market. The only way out of a high rate loan secured by an asset you which you want to keep is to refinance and shop for a lower rate. When buying a car or refinancing a mortgage, it is important to learn the interest rate up front. If the lender won't commit to a rate, it is probably because it will be news you do not want to hear--the lender knows up front that it will be such a high rate that it will frighten you off. Keep looking until you find a lender who will tell you the rate up front, and put the rate in writing. Make sure you specify this rate in your application, before any application fees are paid. You should also always make purchase offers on cars contingent upon the interest rate you want. Although the standard dealer form does not have a space for this, you should always write it in. If you are not allowed to do this by any dealer, shop elsewhere.