QandAs: Loans

I've seen some really low interest rates advertised, are these real?

Answer:
There are very strict laws governing what lenders can and cannot say in advertising.

It's likely that formal advertisements you see that mention specific interest rates are in fact correct. However, the offers might not be as good as they seem at face value. Any time you come across an offer for financing that sounds to good to be true, chances are that it really is too good to be true.

It's not uncommon for lenders and credit card companies to offer loans with very low introductory interest rates that skyrocket after a few weeks or months. Some lenders who offer interest free financing for a certain period of time backdate interest charges to the beginning of the loan period the day after the time period expires. It's frustrating when these types of things happen to you, but it's likely that they were spelled out in the fine print of the contract you signed.

Always be suspicious of financing rates that seem to be much lower than the going rate. Read the fine print very carefully, and make sure that you understand all of the terms and conditions of the loan before you sign on the dotted line.


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