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