Notes
Before you ask
- What lenders tend to look at
Income, existing debts and your credit history come up often. Each lender weighs them its own way.
- Working out how much to borrow
Start from the monthly repayment you can carry, not the largest amount a lender might offer.
Reading an offer
- APR is not the interest rate
The interest rate is what the money costs. APR adds the fees, so it is the better number to compare.
- Fees to find in the terms
Origination, late payment and early repayment fees can sit a long way down an agreement.
Once you've borrowed
- If a repayment might slip
Talking to the lender before the date usually leaves more options open than after it.
- Paying off financing early
It can save interest. Check the terms first for a fee that takes some of the saving back.