2. Annual Percentage Rate (APR) The amount it costs you a year to use credit, expressed as percentage rate Interest, transaction fees, and service charges

3. How long loan lasts Longer the loan = greater cost More interest to pay

4. Interest rate high = loan costs more

5. Access to cash in an emergency The ability to use it now Safety and convenience Earn bonus points or miles

7. Buy Now Pay Later No Loan term Longer you wait to pay off balance, more costs in finance charge

8. APR Annual Fee Grace Period Minimum Payment Credit Limit

9. Make regular payments, usually monthly Banks & Credit Unions

10. Lower interest rate than credit cards Penalties for paying loan off early (lose interest)

11. Federal Government Delay payments until graduate Tax break for education costs

12. Different than installment loan –Longer period of time –More $ borrowed

13. Spend not more than 20% of your take home pay to pay loans (excluding mortgage payment) Lenders no more than 33% of your take-home pay go towards your mortgage

14. Credit History Credit history for past 7 to 10 years

15. Don’t bounce Checks Additional savings deposits Pay bills on time