Will the length of a loan effect the APR I get?

MatthewLondon

If I get a loan for a longer period (say 5 years instead of 3) will my likely APR be lower or higher?

I think lower because I'll be paying for longer and therefore they'll get more money from me in the long term.

But then I think higher APR because it'll take them more time to retreive their money, so a higher risk that I'll default?

What do you think?

And also, is there a calculator on this site which shows roughly what my monthly repayments would be if I took out a loan for X amount, for Y years and at Z APR?

Thanks :A

MFWannabe

Hi
I don't think the APR changes dependant on the term on the loan
It changes dependant on how much you want to borrow; over 7.5k and it is usually lower.
The APR you will be offered may differ fom what is 'offered' on websites; which is why they say for example: loans from 7.9% APR
It really depends how much you want to borrow; if it's a few thousand then a credit card may be cheaper than a loan
There is a loan caluclator in the Cards/Loans links at the top of the page which will tell you how much interest you will pay over the term of the loan

~Brock~

If the loan includes fixed costs such as arrangement fees then the APR will become slightly lower as the term increases to reflect the increased time allowed for the payment of these fees.