Know Your Lender Before Borrowing Money
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 Tips to Consider Before You Borrow
(ARA) ? If you're planning to borrow money to make home improvements, pay your property taxes, or get out of debt, how can you tell the difference between a good loan and a bad one?
The American Bankers Association has advice for consumers who want to make sure they are getting a fair deal.
* Be wary of slick TV ads, telemarketers and especially door-to-door salespeople who offer fast, easy loans for home improvement and repair. The same goes for lenders who say bad or no credit is "no problem."
* Ask for references and check them out. Don't rely on the lender's word.
* Make sure you compare the interest rate to the total cost with fees for your home improvement loan. High up-front fees and points can turn a loan with lower monthly payments into one that actually costs you more in the long run.
* Don't pay upfront fees or application expenses for a loan you may never receive.
* Know exactly what you're agreeing to before signing anything and never let them rush you. Don't be afraid to ask for an explanation of any fees, terms and conditions you don't understand.
When in doubt, turn to someone you trust for guidance ? a banker, a trusted adviser or an experienced family member or friend; and remember: you have the legal right to change your mind for any reason within three days of signing any loan contract where your home is being used as security. For more information on how you can build and protect your credit, visit the American Bankers Association Web site at www.aba.com and click on Consumer Connection.
If you have been a victim of predatory lending, let others know. Call your city or county office of consumer affairs or your state attorney general's office. Make sure you also report your experience to the Federal Trade Commission, which monitors predatory lending scams and frauds nationally. Call toll free (877) FTC-HELP (382-4357).
Courtesy of ARA Content
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