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Do personal loan companies charge origination fees?

Personal loan companies can charge origination fees to cover the costs of processing your loan application and paying out the funds. Instead of a flat fee, you can expect to pay a percentage of your total loan amount, which typically ranges from 1% to 8% with major lenders. For example, let’s say you apply for a $10,000 loan.

How much do loan origination fees cost?

Typically, lenders charge origination fees as a percentage of the total loan amount. It’s usually 1% to 6%, but origination fees may go as high as 8% or even 10% of the loan amount. In some instances, a lender may charge a flat fee instead.

Are origination fees worth the cost?

Origination fees are worth the cost when: If you have great credit and qualify for a personal loan with a lender that doesn’t charge origination fees, then these fees aren’t worth the cost. If you’re considering taking out a personal loan, the best thing you can do early on is compare loans.

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