2. What’s New with Credit

“Send me your UGLY loans,” said the subject line in an e-mail dated April 4, 2007.

Inside was this:

Your loan is so UGLY, even the paper shredder is scared of it.

Your loan is so UGLY, it scared the stitching outta Frankenstein.

Your loan is so UGLY, the janitors use it to keep away the rats.

There were funny cartoon figures illustrating each line. Then at the bottom, it said, “Don’t get stuck with an UGLY LOAN! Call <our company, toll-free number> today!”

Those were the times when late payments, collection accounts, and low credit scores were as welcome as Krispy Kremes. No matter what was on a credit report, the correct response was, “No problem.” And the competition for those ugly loans was fierce.

First, one lender ...

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