Topic 6: Loan Products

Key Borrowing Terminology (website) (United Way): A list of common credit and debt terms and definitions. (loan documents, borrowing, definition, terms, APR, PMI, LTV, TILA) or Credit and Debt Grossary (.docx) (REACH CDC): A list of common loan, credit and debt terms and definitions. (Credit, Debt, loans, definition, terms) 

Building Native Communities: Financial Skills for Families ( full curriculum) (First Nations Development Institute). See session 5 (pages 95-117). Includes case studies on Evaluating a Loan Application that reinforce the 5 C’s of Credit.  P.115 has great questions on what to look for when assessing the terms of a loan product. P138 includes activities and discussion questions about predatory lending. (Loans, credit, interest, character, capacity, capital, collateral, conditions, debt to income)

Comparing Financial Service Providers (pdf) (CFPB): Tool: Compare different financial service providers so you can choose the one that works best for you (Choosing Financial Products and Services, bank accounts, debit cards, fees, credit cards, loans, mortgages, personal, money transfer, prepaid cards).

Comparing Auto Loans (pdf) (CFPB): Tool: Learn how to shop for an auto loan and evaluate the total cost to help you negotiate a deal you can afford (Dealing with debt, vehicle and auto loans, interest rate, monthly payment).

Fact v. Fiction: The Truth about Payday Lending Industry Claims (Center for Responsible Lending) (article) With huge profits at stake, the payday lending industry is fighting reform efforts by positioning itself as “consumer friendly,” misrepresenting the facts, and circumventing state laws. Here are some of the claims: Claim 1: Payday loans provide needed emergency credit. Claim 2: Payday lenders serve the working middle class. Claim 3: Customers understand the cost of this service. Claim 4: Payday loans are cheaper than other alternatives. Claim 5: Fees are high because these loans are risky. Claim 6: Most consumers use payday loans responsibly. Claim 7: Consumers oppose any limits on payday lending. Claim 8: The payday industry is already highly regulated.

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