What act helps consumers when comparing credit options?

The Truth in Lending Act is the legislation that provides consumers with vital information about the costs associated with borrowing money, enabling them to make informed comparisons between different credit options. This act requires lenders to disclose key terms and costs of credit, including the annual percentage rate (APR), terms of repayment, and total costs of financing. By ensuring that these details are clearly presented, the Truth in Lending Act empowers consumers to understand the financial implications of their credit choices and facilitates better decision-making.

The Fair Credit Reporting Act primarily focuses on the accuracy and privacy of consumer credit information rather than directly aiding consumers in comparing credit options. The Equal Credit Opportunity Act is designed to prevent discrimination in lending but does not specifically address the comparison of credit options. Lastly, the Credit Repair Organizations Act regulates organizations that offer credit repair services, rather than providing guidance on comparing various credit offerings.