Look at both the monthly payment and the total amount you will repay. A payment that looks manageable can still come with a high overall cost.
How repayment works
A personal installment loan provides a sum of money that you repay over an agreed period. Payments are generally scheduled in regular installments. Rates can be fixed or adjustable, so check which applies to your loan. The CFPB’s personal loan overview explains the basics.
Understand the cost
- Principal: the amount borrowed.
- Interest rate: the rate used to charge interest on the loan.
- APR: the annual cost of credit, including interest and applicable loan fees.
- Term: the time allowed to repay the loan.
Compare APR with APR when reviewing options. Also check individual fees and the amount you will actually receive. Learn how APR differs from the interest rate.
A repayment example
Suppose you borrow $10,000 for 36 months at a fixed 12% annual interest rate, with no fees. With monthly payments, the payment is about $332.14. Total repayment is approximately $11,957, including about $1,957 in interest.
This is an illustration, not a rate offer. It assumes on-time monthly payments, no extra payments, and no fees. Rounding can change the final payment. Try different amounts in the monthly payment calculator.
Questions to ask before borrowing
- What amount will reach my bank account after any deducted fees?
- What is the total repayment amount, including fees?
- Does the payment fit alongside my existing bills?
- Can the rate or payment change?
- What happens if I pay late or repay early?
- Will the lender use a soft or hard credit inquiry?
Where BorrowForward fits
You share a request, and with your consent we check participating partners that may be a fit. A match is an opportunity to continue with a partner; the partner makes the lending decision and sets the terms. See how matching works.
General educational information. BorrowForward is a matching service, not a lender. Availability and loan terms depend on the lender and your eligibility.