What is a personal loan origination fee? This question is about Personal Loans

A personal loan origination fee is the cost of processing the loan. Lenders typically deduct the origination fee from the loan amount, rather than the borrower paying it out of pocket, and it usually ranges from 1% to 8% of the loan amount. Some lenders instead build the cost of the origination fee into the APR and spread it out over the life of the loan. Key Things to Know About Personal Loan Origination Fees Some personal loans don’t have origination fees. Factors that determine origination fees include your credit score, loan amount and payoff period. The lender and whether or not you have a co-signer matter, too. Loans that require a credit score of 660 or higher often don’t charge origination fees. Direct lenders don’t charge origination fees in many cases. You should not rule out a loan offer simply because it has an origination fee. A low APR may make up for an origination fee in some cases. To see which lenders may approve you and what they may charge, check out the free pre-qualification tool on WalletHub.

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What is a personal loan origination fee?

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This question is about Personal Loans

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Grace Enfield, Content Writer

@grace_enfield • 12/16/21 This answer was first published on 12/16/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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A personal loan origination fee is the cost of processing the loan. Lenders typically deduct the origination fee from the loan amount, rather than the borrower paying it out of pocket, and it usually ranges from 1% to 8% of the loan amount. Some lenders instead build the cost of the origination fee into the APR and spread it out over the life of the loan.

Key Things to Know About Personal Loan Origination Fees

Some personal loans don’t have origination fees.
Factors that determine origination fees include your credit score, loan amount and payoff period. The lender and whether or not you have a co-signer matter, too.
Loans that require a credit score of 660 or higher often don’t charge origination fees.
Direct lenders don’t charge origination fees in many cases.
You should not rule out a loan offer simply because it has an origination fee. A low APR may make up for an origination fee in some cases.

To see which lenders may approve you and what they may charge, check out the free pre-qualification tool on WalletHub.

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What are the fees for a personal loan?

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