 TITLE: What Is the Best Term Length for a Personal Loan? CONTENT: How to Choose a Personal Loan Term Length\n-----------------------------------------\nA personal loan term length is the amount of time you have to pay back the loan. You can find personal loans with term lengths anywhere from 12 to 60 months and sometimes longer. A longer term length means lower monthly payments, but higher interest costs in the long run. To keep the cost of the loan down, you should look for the shortest loan term you can get while still keeping monthly payments manageable.\nThe term length isn't the only factor to consider when applying for a personal loan. You should also pay attention to these other factors:\n*   **Interest rate**: The interest rate of a personal loan is usually shown as an annual percentage rate (APR), which includes fees and other costs in addition to interest. A higher APR means the loan will cost you more, so it's advantageous to get the lowest interest rate you can find. Lenders typically publish APR ranges for personal loans online, making it easy to check out several different lender sites to compare. According to Experian data, as of Q2 2019, the average interest rate for a personal loan was 9.41%.\n*   **Fees**: In addition to interest, lenders typically charge fees when they issue a personal loan. These are either added to the loan balance or subtracted from what is disbursed to you; the cost of fees will be expressed in the APR.\n*   **Funding time**: How long will the loan approval process take, and once you're approved, how quickly can you get your money? It depends. Online lenders typically pay out very quickly, with some even offering same-day deposits. Banks and credit unions, however, take longer to approve and disburse loans, so you might have to wait a few weeks to complete the process.\n*   **Extras**: Look for special incentives lenders may offer or other ways to lower your interest rate or fees. Some lenders will give you a discount for applying online or setting up automatic payments, for example. Others will reduce your interest rate if your credit score rises or if you make on-time payments for a certain period. END