When evaluating personal loans, pay close attention to the interest rate, total
cost of borrowing, and monthly payment.
Monthly payment: Making your personal loan payments on time can help you
establish credit; missing or late payments will damage it. Your monthly budget
should allow for the comfortable payment of your
Total interest payments: Comparing the cost of a loan to another is made
possible by examining the total interest paid on its own. It can also serve as
a gut-check to determine whether the loan is worthwhile.
The best way to compare costs side by side is to use the annual percentage
rate, or APR, which is a representation of the cost of borrowing. This number
must be disclosed by the lender before you may obtain a loan. The APR and
interest rate of a personal loan only alter if additional costs, such as
origination
Minho Lee 