Repayment term
Cards & borrowingThe length of time you have to repay a loan or credit agreement.
Overview
Longer terms reduce monthly payments but can increase total interest.
Shorter terms cost more monthly but reduce interest overall.
Why it matters
- It affects affordability and monthly budgets.
- It changes the total cost of borrowing.
- It can impact lender decisions.
FAQs
Is a longer term always cheaper monthly?
Yes, but the total interest paid is usually higher.
Can I change my repayment term later?
It depends on the lender and the product type.
Related terms
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