Loan origination fee
Cards & borrowingA fee charged for processing and setting up a loan.
Overview
Origination fees are more common in some loan types than others.
They add to the cost of borrowing.
Why it matters
- It affects the total cost of the loan.
- It can make a low rate less attractive.
- It should be considered when comparing offers.
FAQs
Is the fee paid upfront?
Sometimes it is added to the loan, sometimes paid at the start.
Can I avoid origination fees?
Some lenders offer fee-free loans, often with higher rates.
Related terms
Take control of your credit health
Get the complete credit toolkit — all features included.
Start building creditInstant setup. No credit check. Cancel anytime.