Borrowing

Compare amount borrowed, interest rate, fees, term and the total dollars repaid. Use the Loan Comparison Calculator to test two borrowing options side-by-side.

Check whether the payment still works if income drops or another necessary expense rises. Review late-payment and early-payoff terms.

Compare borrowing with waiting, saving, repairing, buying less or using another financing route when those are realistic options.

If payments become difficult:

• Late charges and additional interest can increase the amount owed.
• Missed payments may affect credit and can lead to collection activity.
• Secured borrowing can put the financed property at risk if the agreement is not met.
• A co-signer can become responsible when the primary borrower does not pay as agreed.

Before signing, know the late-payment, default, co-signer and early-payoff terms.