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Personal Loans, in plain language
Installment borrowing — fees, collateral and the true cost.
What to know
- A lump sum repaid in fixed monthly installments
- Secured loans are backed by collateral
- Unsecured loans rely on your creditworthiness
- Fees and rate together set the real cost
Watch out: An origination fee deducted upfront raises your effective cost — judge loans by APR, not rate alone.
Key terms
InstallmentEqual payments over a set term.
Origination feeAn upfront processing fee, often a % of the loan.
CollateralAn asset the lender can claim if you default.
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