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-> Household Management
-> Finances
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amother
OP
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 Wed, Jul 10 2019, 12:10 pm
I need a quick explanation on how these work, what's the difference btwn the two?
And what does 'a point a month' mean?
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Florake
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Thu, Jul 11 2019, 4:02 am
I think the Hard Loans are secured against an assets you have like real estate. So you need collateral to secure the loan. You don't have to have good credit, just collateral to secure the loans.
They are shorter term loans with higher interest rates. I suppose more suited for people with a bad credit score.
Soft Loans are more long term based on your credit score and you don't need collateral to secure the loan.
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amother
Gray
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Thu, Jul 11 2019, 6:39 am
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I could be mistaken but I think "a point" refers to 1% interest. So a 6 month loan might be offered at 6% interest which is a point a month.
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amother
Apricot
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Thu, Jul 11 2019, 6:43 am
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A point is a fee equaling 1% of loan amount. That’s aside the interest rate.
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Pikachu
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Mon, Jul 22 2019, 12:52 am
| amother [ Gray ] wrote: | | I could be mistaken but I think "a point" refers to 1% interest. So a 6 month loan might be offered at 6% interest which is a point a month. |
Correct, with one key error- it’s really 12% interest, only your loan is for half a year. You’re still paying an APR of 12%, which is egregious.
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