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Credit card interest vs.standard bank loan

Posted by victory_tea2085 (My Page) on
Sun, Jun 4, 06 at 22:01

Would someone please explain the difference ( I am told there is a difference) between credit card loans and a standard (home equity loan) bank loan. My wife is thinking of placing her dental bills on a credit card offering 4.9% for the life of the loan. Are they calculated a different way? I know late penalties are severe. Please help. Paul F B


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RE: Credit card interest vs.standard bank loan

Hi there, planning to hold a victory tea in 2085,

(and just what the victory is about doesn't seem to have been specified - sorry, I doubt whether I'll be around to help celebrate),

Read all of the fine print on the credit card contract very carefully.

Maybe all of your payments will be used to pay off that cheap-rate loan, with additional charges having no payments made on them until the loan is completely retired, and carried at (regular?) rates (usually 15 - 18%).

Some choose in such a case to make no new purchases, thus adding no new items, thus no portion of the account at higher rate.

Someone came on here the other day saying that their card co. required that, in such a case, they make at least two new purchases (of at least $1.00 each) monthly in order to continue to qualify for the advantageous rate.

Maybe if you are late with one payment, the whole thing reverts to their regular (usually high) rate.

Do you have some assets that you can use as collateral for a regular loan at a creedit union, bank or S & L?

If you have a guaranteed certificate, stocks, mutual funds for which you have been issued certificates (or even a whole life life insurance policy [they should be good for something]) you could use that as collateral for a loan at quite likely a reasonable rate, without being in danger of the rate being jacked up.

Good wishes for finding an advantageous situation.

Learning how money works pays well.

ole joyful


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RE: Credit card interest vs.standard bank loan

ole joyful,
I live in Victory and have a TEA 2085 Ferguson tractor. I wish I knew less about tractors and more about finances. Thank you for your informative response. Paul F B


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