Which of the following is a key benefit of TILA for borrowers?

The key benefit of the Truth in Lending Act (TILA) for borrowers is the clear understanding of loan costs. TILA was enacted to promote informed use of consumer credit by requiring disclosures about its terms and costs. This transparency helps borrowers comprehend the full picture of their loan obligations, including important details such as interest rates, annual percentage rates (APRs), and other fees associated with borrowing. By ensuring borrowers receive this information upfront, TILA empowers them to make better financial decisions and compare different loans effectively.

In contrast, immediate loan approval is not guaranteed under TILA; the act primarily focuses on providing clear information rather than expediting the approval process. Access to lower interest rates is dependent on market conditions and individual borrower qualifications, rather than being a direct benefit of TILA. Lastly, while some loans may offer longer repayment terms, TILA does not specifically extend loan terms; it simply ensures borrowers are aware of the repayment terms provided in their agreements.