For the last few years, credit has been pretty cheap.  Most people can get that home improvement loan for well under ten percent, or the half-million dollar mortgage for a few points above prime.  However, for those that are looking for a few more numbers in their loan agreements, Gary Coleman promotes an option.

Apparently, cashcall.com is offering loans from $1000 to $5000 with an interest rate of 99.25%, and Gary Coleman is their spokesperson.

Yes … 99.25%  Oddly enough, I think it’s cheaper to borrow money from loan sharks and mobsters.  I’m sure the local pimp would even hook you up with a little cash for less.

The scariest loan I’ve ever taken out was for 17.25%, and that was for a notebook computer back in 1999 when I was just establishing my credit.  After paying off the computer in 12 months, the total amount charged in interest and finance fees came out to just over $700.  At that point I vowed never to pay such a stupid amount of money on a $3000 loan ever again.

Personally, if I was desperate enough for money to warrant a 99.25% interest rate, I’d rather write the letters I-O-U on a napkin and deposit it into my bank’s ATM as though it was a real cheque.  I could do this and then draw $5000 (in 20’s, of course) faster than I could ever apply for a loan.  I bet the bank would even be nicer about the repayment schedule, too.  They’d only demand blood :P
Have you seen other loan companies offer something this ridiculous?  Have you ever heard of people being desperate enough to use them?