Which should I prioritize?

Generally, prioritize low APR if you can afford the payments - you'll save money long-term. Prioritize low payments only if you truly need cash flow flexibility or are stretching to qualify.

How much difference does APR really make?

Significant. On a $20,000 loan: 8% APR over 5 years costs $4,332 in interest, while 15% APR costs $8,549 - nearly double the cost.

Can I get both low APR and low payments?

Rarely. Lower payments usually mean longer terms, which often come with higher APRs. Focus on the lowest APR you qualify for, then choose the shortest term you can afford.

What if I can only afford low payments?

Choose the lowest APR available for your desired payment amount. Look for lenders who don't charge prepayment penalties so you can pay extra when possible.

Low APR vs Low Monthly Payment

Should you prioritize a lower APR or lower monthly payments? Learn how to make the right choice for your financial situation.

Check Your Rates

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Prioritize Low APR

Save money over loan life
Pay off debt faster
Lower total cost of borrowing
Better long-term financial health
More equity built faster
Higher monthly payments
Requires more monthly income
Less budget flexibility
May limit loan amount

Best For:

Those focused on saving money and building wealth long-term

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Prioritize Low Payment

Easier monthly budgeting
More cash flow flexibility
Can afford larger loan amount
Room for unexpected expenses
Easier qualification
Higher total interest paid
In debt longer
Less savings over time
May encourage over-borrowing

Best For:

Those needing cash flow flexibility or larger loan amounts

Side-by-Side Comparison

Feature	Prioritize Low APR	Prioritize Low Payment
Monthly Budget Impact	Higher	Lower
Total Interest Cost	Lower	Higher
Wealth Building	Better	Slower
Financial Flexibility	Less	More
Emergency Buffer	Smaller	Larger
Long-term Savings	Significant	Minimal
Loan Affordability	Smaller loans	Larger loans

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