Understand What You're Paying
Different types of credit can vary greatly. Terms of payment and interest rates can be stated in various ways that can make them difficult to compare. Before taking out any loan, you should fully understand the loan terms and know exactly how much you're really paying for credit.
Things to consider when evaluating types of credit:
- Introductory, variable, or fixed APR
- Truly fixed, or can the lender change it if some conditions are not met?
- Fees
- Prepayment penalties
- Credit score implications
- Ease of use
