Thinking about getting a personal loan? Fear not! Personal Loan Calculator is here to crunch the numbers for you. You simply enter your details below, and the calculator will give you a good estimate of what to expect as your monthly loan payment.
How to use the personal loan calculator
- Loan amount: Here you enter how much you are wanting to borrow. Personal loans range from $500 all the way over $10,000 depending on your credit score
- Interest rate: Enter how much your interest rate is going to be for your personal loan. This rate is typically determined by your Credit Score. The better your score, the lower your rate
- Term: In years, enter how long it will take for you to pay off this personal loan
How to get pre-qualified for a loan
Before getting an actual personal loan, most lenders and Banks let you get pre-qualified for the loan first. A pre-qualification basically gives a quick Financial picture to the lender and see if you are able to carry the loan.
A pre-qualification gives you a good estimate of what your interest rate will be, what your repayment period would be, and what your payments will be. You typically need to provide some information to the lender to get pre-qualified so they can look up your credit. This typically doesn’t affect your score 🙂
The information they might need from you might just be your personal information and social security number. They might also need the reason why you are requesting a loan. This typically takes just a few minutes and easy to do
What to consider when getting a personal loan
Before you hop in and attempts to get a personal loan, they are probably certain things you need to take into consideration. Using this personal loan calculator is just one part of the equation. Take your time to make sure that you’re making the best financial decision.
1. Your current finances
The first and most important thing to take into consideration is to look at your own personal finances. Are you currently deep in debt? If so, what is the reasoning behind getting this personal loan?
Always remember, it’s never a good idea to get out of debt by getting new debt. It might seem like a trick or a hack, but banks and lenders have already factored this in. Your credit score will suffer, and you’ll probably end up paying huge fees transferring that debt around.
So make sure that you take a close look at your finances and understand the reasoning behind getting the loan.
2. Your current credit score
To get a personal loan, you also need to know exactly what your credit score currently is. The lower your score, the higher your interest rate. That’s not a good thing.
There are loads of services out there that provide free credit scores. My personal favorite is Credit Karma, so feel free to check them out. If you already know what your credit score is, then you should probably make sure that your credit score is high enough to be considered to get a loan.
3. Alternatives to getting a loan
Lastly, if you are in urgent need of cash, there are other ways you can get cash. You can either work on increasing your income at work or increase your income on the side. This can be done by doing side hustles outside of work and working on building passive income streams.
These options may not be good if you are in serious need of cash and need to get money as soon as possible. If that’s the case, then a loan might not be a bad idea. Just make sure you use the loan responsibly.
4. Only borrow what you need
If after reading all this and you are still very willing to get a personal loan, then make sure you only borrow what you need. It’s very easy to get tempted to borrow more than you need for “just in case I need it.”
So, make sure you get only what you actually need, that way, you don’t unnecessarily get more debt than what you need.
Work on a budget
One last thing you definitely need to do is get a budget ready! By having a budget, you can make sure that you can keep up with these new payments without having to struggle to keep up with the payments.
Hope this Personal Loan Calculator helped you out, and if so, make sure to share it with friends and family that might need it.
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