I think the discount loan can certainly be a good idea for a short term loan; I wish I had known about it before.
Years ago our credit card company would send us mailings offering us what they called personal loans. It could be for any amount up to $10,000. The interest rate, I believe, was around 7%, which was certainly less than the annual percentage rate on the credit card.
Well, we had such a need, for home improvement and such. This was before we knew about home equity lines of credit.
Anyway, we took out the loan, thinking we’d repay it in two years. Instead, it took almost five years. I don’t know what the total accrued interest was, but I didn’t want to look.
Sure, it was cheaper than putting the whole $10,000 on a credit card, but if you take awhile to pay it off, it will still be expensive.