What is the primary purpose of the Truth in Lending form?

The primary purpose of the Truth in Lending form is to disclose all costs associated with the loan. This form provides borrowers with vital information regarding the terms and conditions of their credit transactions, including interest rates, fees, and the total cost of borrowing. By ensuring that consumers have access to clear and comprehensive information, the Truth in Lending form promotes transparency and allows individuals to make informed decisions about taking out loans.

This disclosure requirement is crucial because it helps prevent deceptive lending practices and encourages fair dealings in financial transactions. Lenders must present information in a standardized format that makes it easy for consumers to compare different loan offers, fostering informed financial decision-making.

The other options do not align with the primary function of the Truth in Lending form. For instance, it does not focus on outlining benefits of high credit limits or summarizing available credits, nor does it advertise credit scores. Instead, its main goal is centered on ensuring borrowers are fully aware of the financial obligations they are agreeing to when they take out the loan.