Borrowing Money

Watch this video, which explains that borrowers who seem riskier due to a poor credit history must usually pay more to obtain loans – lenders are more willing to accept the higher risk if you pay them an additional fee. Bank lenders may be forced to foreclose or take possession of the house or car of borrowers who default on their loans and sell it to recoup the money they loaned the borrower. Similarly, credit card companies charge late fees and raise interest rates to borrowers who fail to pay their monthly credit card bills. These extra fees can quickly add up.