Origination fee: You’re more likely to come across this fee if you’re dealing with an online lender, and it’s usually calculated as a percentage of your loan to cover the costs of processing or underwriting your loan.
Prepayment penalty fee: While it may seem like a good thing to pay back your personal loan early, some lenders charge a fee for doing this. That’s because they make less money in interest when you repay your loan early.
Returned check fee: If your payment doesn’t go through because you have insufficient funds in your bank account or you bounce a check, you may run into a returned check fee. This is typically a flat amount.
Every financial product comes with advantages and disadvantages, so it’s important to weigh the benefits against the costs to determine if a personal loan is good for your needs.