Reviewing the Credit Contract (1278)

If you decide to use credit, you will be asked to sign a contract. The contract is legally binding in court and should include the following information:

- cash price

- the down payment or trade-in value and remaining balance

- the finance charge in dollars and cents

- the annual percentage rate (APR)

- all other charges not included in the cash price

- the number, dollar amount, and due dates of payments

- the charge for a late payment

- a description of collateral held by the creditor, if any

- whether there is a prepayment penalty

If you do not understand the entire contract, be sure you ask someone from the credit department to explain it to you. You are obligated to fulfill your credit responsibilities once you sign on the dotted line.

For more information on this subject, Please visit the College of Agricultural Sciences Publications Web site.

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