In the case of installment credit, the creditor must provide specific information on the credit terms. Creditors offering different APRs or monthly payment amounts have different total costs for the same loan. Comparison shopping by the consumer will reveal the best credit arrangement for his or her particular situation. Another consideration when selecting installment credit plans is the tax implications. However, the interest on a home equity line of credit is deductible.
Credit is helpful in making purchases large and small.
However, studying the different credit options available and their costs can help consumers keep finance charges to a minimum.