Before you agree to a home improvement loan, here's some precautions you should ALWAYS take.

Ask specifically if credit insurance is required as a condition of the loan. If it isn't, and a charge is included in your loan and you don't want the insurance, ask that the charge be removed from the loan documents. If you want the added security of credit insurance, shop around for the best rates.

* Keep careful records of what you've paid, including billing statements and canceled checks. Challenge any charge you think is inaccurate.

* Check contractor's references when it is time to have work done in your home. Get more than one estimate.

* Read all items carefully. If you need an explanation of any terms or conditions, talk to someone you can trust, such as a knowledgeable family member or an attorney. Consider all the costs of financing before you agree to a loan.