As a general rule, you should request the lowest amount that you need immediately and make every attempt to pay back your loan as quickly as possible. Both the speed at which online loans are processed and the chance that lenders take by approving "risky" borrowers tend to add up to higher than average finance fees charged.


The annual percentage rate or APR is a calculation of the fees of a loan in relation to the amount of money being borrowed. It is intended to allow consumers to more easily compare the costs of borrowing when comparing different loan types, amounts, and terms. The number reflects the cost of obtaining a loan on a yearly or annual basis.


There are two types of APR: nominal and effective. Nominal APR is calculated as: the rate for a payment period, multiplied by the number of payment periods in a year. Effective APR can include various fees, service charges, and compound interest. The APR can also vary greatly based on one-time fees, interest only payments, and other variances of individual loan types. APR will always be disclosed before the loan is finalized so that customers can make an informed decision.


The best way to determine what you will have to pay is to know and understand the terms of your loan. The important numbers are dollar amount or percent of interest charged per $100 borrowed, the length of time before you will pay off your loan, and any associated fees in the case of rollovers, extensions, or missed payments. To get the lowest fees on any loan it is best to pay the loan off as soon as possible.


Paying back quickly gives you the best rate. Any loan can be costly if you let the balance roll over without paying it off as soon as possible. Request a dollar loan amount that you will be able to pay back quickly.