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Most loans use an amortisation formula that spreads the balance and interest evenly across every month of the term. Each payment covers the interest charged that month first, and whatever is left reduces the balance — so early payments are mostly interest and later ones are mostly principal.

The interest rate is the cost of borrowing the money alone. The APR also includes lender fees expressed as a yearly rate, so it usually sits slightly higher. When you compare offers, the APR is the fairer number because it captures more of the true cost.

Almost always, yes. A longer term lowers the monthly payment because the balance is spread over more months, but you pay interest for longer, so the total interest rises. Use the term selector above to compare the monthly payment against the total cost.

Many lenders allow overpayments, and paying extra reduces the balance that interest is charged on, which can save a large amount. Some agreements apply an early repayment charge, so check your own terms before making a lump-sum payment.

There is no single cut-off, because each lender sets its own criteria. A higher score generally unlocks lower rates, while a lower score may still be approved but at a higher cost. Checking your score before you apply helps you judge which offers are realistic.