Loan term
Cards & borrowingThe 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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