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I don't think I've ever seen a bank offer anything other than compound interest on a loan. It's definitely legal and most likely the default for every account.
by pg_bot 8y ago
I don't think I've ever seen a bank offer anything other than compound interest on a loan. It's definitely legal and most likely the default for every account.
- dixie_land 8y agoInterestingly I came across this article https://thefinancebuff.com/is-home-mortgage-simple-interest-or-compound-interest.html https://thefinancebuff.com/is-home-mortgage-simple-interest-... I think as the article pointed out we might've different standards in referring to what is compound interest. But my original point is that I thought consumer loans would not incur interest-on-interest (as in if you're late in payments for your car loan, the interst "compounds" due to higher unpaid principal, but the missed interest would not add to the principal), which seems not be the case for student loans as per the author.