Personal Loan Calculator
See if a personal loan is right for you. Remember, it's all about getting a lower interest rate. Plug in some numbers and see if you're able to save some cash.
What is a personal loan?
A personal loan is money you borrow from a financial institution that you pay back in monthly installments. Personal loans can be offered by traditional banks, online banks and credit unions. These loans typically range from $1,000 – $100,000. The interest rates on personal loans can be either variable or fixed.
Why are personal loans so popular with credit card debt consolidation?
Many borrowers will combine all of their credit card debt and pay it all off with a personal loan. The reason for this is because personal loans typically have a lower interest rate compared to credit cards, and instead of multiple monthly payments you will consolidate it to one. Your goal is to pay off your debt as quick as you can, and a personal loan’s lower interest rates will help you save money along the way. Always keep in mind that a strong credit profile helps lower your rate.
Can a personal loan raise your credit score?
Yes. Paying your personal loan’s monthly payments on time can help you increase your credit score. Credit bureaus, which are the companies responsible for your credit score, analyze various criteria to determine your credit score. One metric the credit bureaus use is the types of debt that you have. If you only have credit card debt, having a personal loan can offer the diversity of the types of debt that you have.
A personal loan is classified as installment debt. This means you pay the same amount each month. Credit cards are revolving credit.
Do not take out a personal loan just to raise your credit score, that is not a wise decision. But, when you need money, make sure to take a look at the best online personal loan lenders, overall they offer the best rates and trim down your costs.