If that sounds like a risky proposition for new borrowers, the good news, in our view, is that Branch never charges its users overdraft fees.
If that sounds like a risky proposition for new borrowers, the good news, in our view, is that Branch never charges its users overdraft fees.
New borrowers are being penalised with high rates to compensate.
Some analysts, though, expressed concern about new borrowers.
The agency says that in practice, new borrowers already have much higher scores.
But with money tight, other banks are being picky about taking on new borrowers.
In a bid to win customers, Halifax offered cut-price loans to new borrowers last year.
But that just means that they have become more expensive for new borrowers.
But current borrowers would not benefit from the new income-based repayment plan, since only "new borrowers" will be eligible.
The rates are fixed over the life of the loan but would change for new borrowers each year.
Traditional banks and savings-and-loans stayed away from the new borrowers — they were considered too risky.
