Personal loans can come with hidden costs, and one of the most significant is the origination fee, which can reach up to 12% of the borrowed amount. This fee is often deducted from the loan proceeds, making it crucial for borrowers to understand its implications on their overall loan cost. Fortunately, borrowers with good or excellent credit can easily find personal loans that do not charge origination fees. For those with fair or lower credit scores, the search may be more challenging, but local credit unions often offer competitive options without these fees. A recent study by Investopedia examined 59 lenders, revealing that 33 do not impose origination fees, with a notable 19 out of 20 credit unions surveyed also waiving this charge. LightStream emerged as the top personal lender overall, excelling in this category as well. This article highlights how to navigate the loan landscape and find the best deals without origination fees.
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