I s a Personal Loan Right for Me? - Part 2

                                            I s a Personal Loan Right for Me?  - Part 2 

I s a Personal Loan Right for Me?  - Part 1 go here link 

I s a Personal Loan Right for Me?  Part 2 

What Terms of Financing Should I Know Before I Sign?

11  Take the time to know and understand all of the terms, conditions and costs of a loan before you sign the contract

22 Review your credit application and loan documents carefully.

33 Ask questions about any items you don’t understand before you sign.

Amount Financed - The total dollar amount of the credit that is provided to you.

Annual Percentage Rate or “APR” - A measure of the cost of credit expressed as a yearly rate.

Credit Insurance - Optional insurance that is designed to repay the debt if the borrower dies or becomes disabled

Finance Charge - The dollar amount you pay to use credit.

Fixed Rate Financing - The interest rate and the payment remains the same over the life of the loan. Equal monthly payments of principal and interest are made until the debt is paid in full.

Length of Payment - The total number of months you have to pay the credit obligation.

Late Payment Fee - A fee that is charged when payment is made after its due date.

Monthly Payment Amount - The dollar amount due each month to repay the credit agreement.

What Federal Laws Should I Know?

Truth in Lending Act

Requires creditors to give you written disclosures of important terms of the credit agreement, such as APR, finance charges, monthly payment amounts, payment due dates, total amount being financed, length of the credit agreement and the consequences of not making a monthly payment.

Federal Trade Commission’s Credit Practices Rule

• Requires creditors to provide a written notice to potential co-signers about their liability if the other person fails to pay;

• Prohibits late charges in some situations; and

• Prohibits creditors from using certain contract provisions that the government found to be unfair to consumers.

Equal Credit Opportunity Act

Prohibits the denial of credit because of your sex, race, marital status, religion, national origin, age, or receiving public assistance.

Fair Credit Reporting Act

Gives you the right to learn what information is being distributed about you by credit bureaus.

Fair Debt Collection Practices Act

Prohibits third-party debt collectors from using unfair or deceptive practices to collect overdue bills that your creditor has forwarded for collection.