Post #4094913
2026-07-25 10:45 UTC
Obviously, the fly in the ointment here is the *risK* in "risk premium." The reason the risk premium exists is that poor borrowers have a harder time paying their loans. That can be good, up to a point: if you're Klarna and you're originating loans to people Chipotle lunches on the installment plan, you *want* your borrowers to miss several payments.
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Replies (1)
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@pluralistic@mamot.fr 2026-07-25 10:45
Klarna loans are free if you pay them back on time, but if you miss a payment, you're hit with a huge penalty charge and sky-high interest (on top of the principle *and* the penalty). On a small purchase, penalties and interest can quickly add up to a triple-digit APR. 5/