Discuss that consumers who use credit should be aware of laws that are in place to protect them and that these include requirements to provide full disclosure of credit terms such as APR and fees, as well as protection against discrimination and abusive marketing or collection practices. Explain why it is important that consumers have full information about loans. Explain the information on a credit disclosure statement. ***Explain that consumers are entitled to a free copy of their credit report annually so that they can verify that no errors were made that might increase their cost of credit . Explain why it is important to check the accuracy of the information recorded on a credit report and know what steps to take to correct errors on credit reports.
Explain why do people often apply for a mortgage to purchase a home and identify a mortgage is a type of loan that is secured by real estate property as collateral.