//THE COST OF CREDIT
Money doesn’t grow on trees. When you borrow money from any lender, there are many different charges. 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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