For more information, read our article on the differences between the three most common forms of credit and choose who is right for you. Lending money to family and friends – when it comes to loans, most refer to loans to banks, credit unions, mortgages and financial aid, but hardly do people consider getting a credit agreement for their friends and family, because that`s exactly what they are – friends and family. Why do I need a credit agreement for the people I trust the most? A credit agreement isn`t a sign that you`re not trusting someone, it`s just a document you should always have in writing when lending money, just like having your driver`s license with you when you`re driving a car. The people who make it difficult for you to want to write a loan are the same people you should worry about the most – you always have a credit agreement when you lend money. The state in which your loan is made, i.e. the state in which the lender`s business is or resides, is the state that manages your loan. In this example, our loan comes from New York State. Depending on the amount of money borrowed, the lender may decide to leave the authorized agreement in the presence of a notary. This is recommended when the total amount, plus interest, is greater than the maximum rate allowed for the small claims court in the parties` jurisdiction (normally $5,000 or $10,000). In short, a credit agreement is a formal legally binding document that constitutes both positive and negative agreements between the borrower and the lender, in order to protect both parties if one of the parties does not respect its commitments. Subsidized loans are loans that the federal government pays for their interest when the student is in CEGEP or if the loan is deferred, while the loan begins to collect interest as soon as it is contracted. Most online services that offer credit usually offer quick cash loans such as installment loans, installment loans, line of credit loans, and title loans. Loans like these should be avoided as lenders calculate maximum rates, as the annual annual percentage rate of use (annual percentage rate) may increase slightly above 200%.