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Loan term

Cards & borrowing
The length of time you have to repay a loan.

Overview

Longer terms lower monthly payments but increase total interest.

Shorter terms cost more per month but reduce total cost.

Why it matters

  • It affects affordability and budgeting.
  • It changes the total cost of borrowing.
  • It influences lender decisions.

FAQs

Can I change my loan term?

It depends on the lender and product terms.

Is a longer term always better?

Not necessarily. It lowers payments but increases interest.

Related terms

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