Loan terms affect credit cost by changing interest paid over time. Longer terms mean lower monthly payments but higher total interest, while shorter terms reduce interest but increase monthly payments.
It’s all about the "Amortization" schedule. A longer term means the principal stays higher for longer, so the interest calculated monthly on that balance accrues more heavily.
Loan terms affect credit cost through interest rate and repayment length. Longer terms mean lower monthly payments but more total interest paid. Shorter terms usually cost less overall but require higher monthly payments.
