| loan v. credit [message #386993] |
Mo, 15 Mai 2006 21:12 |
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Can anyone tell a precise difference between "loan" and "credit"?
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| Re: loan v. credit [message #386997 ] |
Mo, 15 Mai 2006 21:50 |
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al2502 [at] poczta.fm wrote:
> Can anyone tell a precise difference between "loan" and "credit"?
One involves interest and the other doesn't (according to my dictionary).
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| Re: loan v. credit [message #386998 ] |
Mo, 15 Mai 2006 21:45 |
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In message <1147720367.083616.302660 [at] j73g2000cwa.googlegroups.com>,
al2502 [at] poczta.fm writes
>Can anyone tell a precise difference between "loan" and "credit"?
>
A Loan is a type of credit.
--
John Boyle
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| Re: loan v. credit [message #387002 ] |
Mo, 15 Mai 2006 22:23 |
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al2502 [at] poczta.fm wrote:
> Can anyone tell a precise difference between "loan" and "credit"?
There is no real difference.
If someone gives you a loan they are lending you money. OK, they might
be lending you something other than money, but whatever it is will be
worth money, so it amounts to the same thing.
If someone gives you credit, this is very similar to lending you money,
though generally the term is used only in circumstances where you are
buying something and paying for it with "credit" rather than cash.
So really someone giving you credit is exactly like someone lending you
the money with which to pay for your purchase.
In both cases you end up owing money to the lender or creditor.
In both cases the terms of the agreement may involve you having to
pay back more than you borrowed, i.e. paying interest.
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| Re: loan v. credit [message #387016 ] |
Di, 16 Mai 2006 09:32 |
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<al2502 [at] poczta.fm> wrote in message
news:1147720367.083616.302660 [at] j73g2000cwa.googlegroups.com...
> Can anyone tell a precise difference between "loan" and "credit"?
>
To offer a loan is to offer credit.
However to offer credit is not necessarily to offer a loan.
Adrian Smith
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| Re: loan v. credit [message #387255 ] |
Di, 16 Mai 2006 11:24 |
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Adrian Smith wrote:
>
> <al2502 [at] poczta.fm> wrote in message
> news:1147720367.083616.302660 [at] j73g2000cwa.googlegroups.com...
>> Can anyone tell a precise difference between "loan" and "credit"?
>>
>
> To offer a loan is to offer credit.
>
> However to offer credit is not necessarily to offer a loan.
Isn't it?
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| Re: loan v. credit [message #387265 ] |
Di, 16 Mai 2006 15:37 |
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"Ronald Raygun" <no.spam [at] localhost.localdomain> wrote in message
news:3Tgag.70027$wl.40261 [at] text.news.blueyonder.co.uk...
> Adrian Smith wrote:
>
>>
>> <al2502 [at] poczta.fm> wrote in message
>> news:1147720367.083616.302660 [at] j73g2000cwa.googlegroups.com...
>>> Can anyone tell a precise difference between "loan" and "credit"?
>>>
>>
>> To offer a loan is to offer credit.
>>
>> However to offer credit is not necessarily to offer a loan.
>
> Isn't it?
>
I could offer to credit your bank account with £100 as a gift..... Not that
I would of course :-)
We apply a credit to the accounts of our new customers. I don't think this
could be termed a loan either.
Adrian Smith
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| Re: loan v. credit [message #387266 ] |
Di, 16 Mai 2006 16:25 |
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Adrian Smith wrote:
> "Ronald Raygun" <no.spam [at] localhost.localdomain> wrote in message
> news:3Tgag.70027$wl.40261 [at] text.news.blueyonder.co.uk...
>> Adrian Smith wrote:
>>> <al2502 [at] poczta.fm> wrote in message
>>> news:1147720367.083616.302660 [at] j73g2000cwa.googlegroups.com...
>>>> Can anyone tell a precise difference between "loan" and "credit"?
>>>
>>> To offer a loan is to offer credit.
>>>
>>> However to offer credit is not necessarily to offer a loan.
>>
>> Isn't it?
>
> I could offer to credit your bank account with £100 as a gift..... Not
> that I would of course :-)
:-( You meanie!
> We apply a credit to the accounts of our new customers. I don't think this
> could be termed a loan either.
The word "credit" has several meanings, right enough, but it never crossed
my mind that the OP might have been considering the meaning used in your
examples.
I assumed [*] that our friend was restricting his question to that meaning
of "credit" which relates to the type of credit which is extended, typically
by way of credit cards or by way of payment terms such as "strictly within
30 days from date of invoice". This type of credit is, I'm sure you'll
agree, always a loan, despite not generally being described as such.
What distinguishes a loan described as a loan from a loan described
as credit, is probably that the former is usually arranged for a special
purpose and by means of an individual loan agreement. A car loan, for
instance, or a mortgage.
---
[*] I'm not sure why I assumed this. I admit I could well be mistaken.
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| Re: loan v. credit [message #390188 ] |
Do, 18 Mai 2006 13:11 |
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Thank you all for your kind and informative response to my query :-)
As a teacher of English I was puzzled by the loan-v.-credit question by
one of the bank employees I'm currently teaching in Poland. The
technical distinction in Polish is closer to the one you described. At
least that's what my student pointed out to me.
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| Re: loan v. credit [message #390189 ] |
Do, 18 Mai 2006 13:22 |
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> al2502 [at] poczta.fm wrote:
> > Can anyone tell a precise difference between "loan" and "credit"?
>
"Colin Forrester" wrote
> One involves interest and the other doesn't (according to my dictionary).
Which one *doesn't* ? [According to your dictionary.]
A "loan" quite often involves interest, so you may mean
that a "loan" involves interest and "credit" doesn't. But
in that case, what on earth is "an interest-free loan"?!!
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| Re: loan v. credit [message #390191 ] |
Do, 18 Mai 2006 13:57 |
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Tim wrote:
>> One involves interest and the other doesn't (according to my dictionary).
>
> Which one *doesn't* ? [According to your dictionary.]
>
> A "loan" quite often involves interest, so you may mean
> that a "loan" involves interest and "credit" doesn't. But
> in that case, what on earth is "an interest-free loan"?!!
[Source OED]
Loan = a thing that is borrowed, especially a sum of money that is
expected to be paid back with interest.
Credit = the ability of a customer to obtain goods or services before
payment will be made in the future. [no mention of interest].
Both entries have other meanings but not related to the question posed.
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