//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.
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