 TITLE: What Is a Precomputed Interest Loan? CONTENT: How to Avoid Precomputed Interest Loans\n---------------------------------------\nIf you don't have any plans to pay off your loan early, a precomputed interest loan may not present any issues. But if you'd rather avoid the potential problems that can arise when prepaying the loan, there are a few options to consider:\n*   **Pick a different lender.** If you have poor credit, your options may be limited. Depending on the type of loan you need, however, there may be plenty of alternative lenders from which you can choose. Be sure to compare other important features, such as the loan's interest rate and fees. While a precomputed interest loan isn't ideal, you typically won't be better off choosing another lender if the interest rate on their loan is much higher or the repayment term is shorter than you'd like.\n*   **Find a cosigner.** A creditworthy cosigner may be able to help you qualify for a better loan that doesn't require precomputed interest. Just be sure your cosigner understands what it means to cosign a loan and how it might impact their credit.\n*   **Improve your credit.** If you absolutely need the loan funds now, you may not have time to build your credit before you apply. But if it's not urgent, taking some steps to improve your credit can help you qualify for more quality borrowing options. Start by reviewing your credit report, which you can get for free through AnnualCreditReport.com. You can also check your FICO® Score☉ and review your Experian credit report for free through Experian. Reviewing this information can give you an idea of what you can address to potentially improve your creditworthiness. For example, it may mean getting caught up on past-due payments, paying down credit card debt or disputing fraud. END