Origination fees
An origination fee may be stated as a percentage of the loan or a flat amount. A provider may deduct it from the proceeds. If you borrow $10,000 and a fee is deducted, you could receive less than $10,000 while repaying based on the disclosed loan amount. Review the provider’s exact calculation.
Other charges to check
| Possible charge | Question to ask |
|---|---|
| Late fee | When is a payment late, and is there a grace period? |
| Returned-payment fee | What happens if a bank transfer fails? |
| Prepayment penalty | Is there any charge for paying early? |
| Optional product | Is insurance or another add-on truly optional? |
How fees affect comparison
Compare net proceeds, APR, monthly payment, and total repayment. If two offers provide different cash amounts after fees, they are not directly equivalent. Ask for disclosures based on the same amount you actually need.
Never pay for a promise of approval. Be cautious if anyone demands payment through gift cards, cryptocurrency, wire transfer, or another hard-to-reverse method before providing a loan.