The four key disclosures
Federal Truth in Lending rules require lenders to disclose four key terms before you're committed to a loan. They usually appear together in a box near the top of your loan agreement.
- Annual percentage rate (APR)
- The cost of your credit expressed as a yearly rate. APR includes interest and certain fees, which makes it the best number for comparing the cost of different loans. Short-term loans can have very high APRs because the cost is spread over a short period.
- Finance charge
- The dollar amount the credit will cost you, including interest and certain fees.
- Amount financed
- The amount of credit provided to you or on your behalf.
- Total of payments
- The amount you'll have paid after making every scheduled payment. It equals the amount financed plus the finance charge.
Other terms you'll see
- Payday loan (deferred deposit loan)
- A short-term loan generally repaid in one payment on the due date in the agreement. Nevada law calls these deferred deposit loans.
- Installment loan
- A loan repaid through a series of scheduled payments over an agreed period.
- High-interest loan
- Under Nevada law, a loan with an annual percentage rate above 40 percent.
- Loan term
- How long you have to repay the loan in full.
- Due date
- The date a payment must be made.
- Principal
- The amount you borrowed, not including interest or fees.
- Default
- Failing to repay according to your loan agreement.
- Repayment plan
- An arrangement to repay a loan over additional time. Nevada law requires lenders to offer one before starting a civil action to collect a defaulted payday or high-interest loan.
- Rescission
- Cancelling a loan after signing. Nevada law gives payday loan customers a right to rescind under the conditions in NRS 604A.5023.
- Underwriting
- The lender's review of your application to decide whether to approve a loan and on what terms.
Reading your loan agreement
- Find the four key disclosures and check the finance charge and total of payments.
- Check the payment schedule: each amount and each due date.
- Look for any fees, including what happens if a payment is late or returned.
- Read what happens if you can't repay, including repayment plan options.
- Ask questions before you sign. Contact RoosterLend.