The Ledger tools
Read the loan agreement before you sign.
Slow down and check the rate, fees, payment schedule, and terms in the agreement in front of you.
Review the agreementRead the numbers in this order
Start with the amount you will receive, then check the APR, interest rate, origination fee, financed fees, payment amount, number of payments, and total of payments. If the money sent to you is smaller than the amount used to calculate repayment, find out why.
Find the rules that change the cost
Look for late fees, failed-payment fees, prepayment language, variable-rate language, automatic-payment terms, and what happens after a missed payment. A lender’s summary can be helpful, but the signed agreement controls the details.
Questions to answer before signing
Can you make the payment after the introductory period ends? Is the payment date workable? What happens if you pay early? Which fees are optional? Who services the loan? If an answer is unclear, ask the lender to explain the exact clause in writing before you accept the offer.
The Ledger
Read up before you decide
Use these borrowing notes alongside the terms in your agreement.
Your questions, answered
Finding the loan terms
Agreement terms
Which figures should I locate first?
Find the APR, fees, payment schedule and total repayment in the agreement. Mark any conditions you want clarified before signing.
Before your next step
Keep the agreement open
Follow each number back to the document.
Review the agreementA few details to keep beside you.
- Locate the APR, payment schedule and total repayment.
- Mark fees and any early-repayment conditions.
- Ask for clarification before signing anything you do not understand.
