I'm new to this whole loan thing. My husband and I are up to our ears in debt. We don't own a home. We are on our local Credit Union's site and trying to figure out what kind of loan we will be able to get. Under Consumer Loans there are 2 types. A Share Loan which the APR ranges from 12.25%-18%, and a 90% Share Loan which has a rate of 3.25%. What is the difference, I am so confused. 12.25%-18% doesn't really seem like it would save us THAT much money. Thanks!
2006-12-08 16:35:07 · 1 answers · asked by suekiemama@sbcglobal.net 2 in Business & Finance ➔ Credit
The 90% share loan is guaranteed by money you have on deposit with the credit union. You must have 90% of the loan amount on deposit with the credit union. Since the loan is insured by the money on deposit (which you won't be allowed to withdraw) it's a risk-free loan so you get the ultra low rate.
2006-12-08 16:39:30 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋