Accurate and complete information about credit terms and prices is essential for households to make sound judgments about the use of credit. Information disclosure improves consumers' ability to compare products and to choose those products that will help them meet their personal goals.
To be effective, disclosures must give consumers information about credit pricing and important terms at a time when it is relevant, and in language consumers can easily understand. The information must also be presented in a format that allows consumers to pick out and use the information that is most important to them. Effective disclosures give consumers information they notice, understand, and can use.