Borrowing Basics
More understanding. Fewer surprises.
A manageable payment is one part of the picture. Before you accept a loan, look at how these four details work together.
What will this loan cost me, from start to finish?
Four details that shape your loan cost
The amount you receive
Check the amount financed and whether any fee is deducted from the money paid to you. If an origination fee applies, you may receive less than the full loan amount.
The annual percentage rate
APR expresses the yearly cost of credit, including interest and certain fees. A lower APR generally means a lower cost, but compare the total repayment too.
The repayment schedule
Compare the number of payments, due dates and whether the interest rate can change. A fixed rate stays the same for the life of the loan.
The total cost
Review the finance charge, fees and total repayment, not just the monthly payment. A longer term lowers the monthly amount but usually increases total interest.
Compare before you commit
The monthly payment is important, but the total cost tells the full story. Two loans with the same monthly payment can have very different total costs depending on the term, rate and fees.
Use our calculator to compare different amounts, terms and rates side by side.