If your credit history is ruined it may be difficult

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If your credit history is ruined, it may be difficult for you to get new credit. In this case, reputable Warning Tip 152
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Using Credit Responsibly lenders may only be willing to give you a se- cured loan, even if you want to borrow just a small amount of money. No matter what type of loan you apply for, the federal Truth in Lending Act requires lenders to provide you with certain written information before you sign a loan agree- ment so that you understand the exact terms of the loan. Among other things, the written information must indicate: • The terms of the loan, including the amount of the loan, the amount of interest you will pay over the life of the loan, and the cost of any loan-related fees asso- ciated with the extension of credit. If you must purchase credit insurance as a condi- tion of a loan, shop around for the best deal. You do not have to buy the insurance from the lender. • Whether you must pay a down payment and if so, how much you must pay. The loan’s annual percentage rate or APR. The loan’s periodic rate—the rate of interest you will pay each day on the loan’s outstanding balance. • Any conditions that will cause the loan interest rate to increase. The total amount of finance charges you will pay over the life of the loan unless you pay it off early. Tip 153
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Credit Hell The total number of payments required to pay off the loan unless you pay it off early. The loan payment schedule and when the loan will be paid off according to that schedule. The amount of each loan payment. The amount of the late fee. Whether you must make a balloon payment, a large, lump sum payment, at the end of the loan term. Whether you must pay a penalty if you want to pay the loan off early. If you are approved for a home equity loan, a home equity line of credit, or for any other kind of credit where you use your home as collateral, after you have signed the loan agreement, the lender must give you until midnight of the third business days (Saturdays included) to change your mind and cancel the loan. Tip 154
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