Fees are one of the most common reasons two loans with similar interest rates end up costing very different amounts. Knowing what to look for makes comparison shopping more accurate.
Origination fees
Some lenders charge an origination fee — often 1% to 8% of the loan amount — deducted from your loan proceeds. This affects your effective APR.
Prepayment penalties
Most personal loans don't charge prepayment penalties, but it's worth confirming before signing.
Late and returned-payment fees
If a payment is missed or returned, expect a fee in addition to potential credit reporting impact.
This article is for educational purposes only and does not constitute financial, legal, or credit advice. Loan approval, rates, and terms are determined by participating lenders and are subject to eligibility, underwriting, and applicable law. Not all applicants will qualify.