 TITLE: How to Take Out a Personal Loan CONTENT: Understand What You Can Afford\n------------------------------\nIt's also important to figure out how much you want to borrow before submitting applications. You can often pay off a personal loan early without paying any prepayment penalties; however, many lenders charge an origination fee—often, a percentage of the loan amount—which means borrowing more money than you need will lead to unnecessarily high fees.\nYour monthly payment will depend on your loan amount, interest rate and repayment period (also called the loan term). A loan calculator can help show you how changing these factors can impact your monthly payment. Compare several options and review your budget to see how much you can afford to borrow. You might get a more affordable monthly payment with a loan that has a longer term, but you'd likely end up paying more in interest.\nPersonal Loan Calculator\n------------------------\n†The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.\nBefore applying for personal loans, review the lenders' minimum and maximum loan amounts. It's also important to know that a lender could approve you for a loan, but for less than you want to borrow.\nYour debt-to-income (DTI) ratio—a comparison of your monthly income and debt obligations—can directly impact how much you're approved to borrow. Paying off debts or increasing your income can lower your DTI, which could make it easier to get approved for a bigger loan or one with more favorable terms. END