//The Costs of Credit

Loan rates and terms from finance companies, retail stores and financial institutions can vary greatly. Compare these things when shopping for credit:

• Annual percentage Rate (APR):  This is the standardized interest rate you must pay the lender each year for the use of borrowed money.
• Finance charge:  This is the total dollar amount the loan will cost you.  It includes fees, interest, plus any other charges.
• Loan maturity:  A longer repayment period lowers your monthly payments, but increases the total amount of interest you pay.
• Grace period:  This is the length of time you have before interest is charged.