12-Month Loan Interest Rate Comparison
- February 5th, 2012
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Borrowers looking into 12 month loans need to make sure they know what the expectations are before accepting the terms of the loan. The terms of the loan include the amount that will be paid back each month and the interest rate of the loan. The interest rate of the loan is one of the most important parts of the loan terms. The interest is the percentage ofloans that will be added to the loan as a repayment for borrowing the money. It basically becomes a borrower’s fee.
The higher the interest, the more money needs to be paid back at the end of the term of the loan. The better the credit score of the borrower, the less interest is added to the loan in the end. A typical interest rate on a loan for people with fair or poor credit is in the 10% or higher range. This means that for every $100 borrowed, the borrower needs to pay back $110 total. Keeping track of how much interest is an important part of comparing loans, as people do not want to pay more than is necessary.
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