A personal loan is an excellent tool to consolidate credit card debt, get a lower interest rate and save you money. A personal loan can also be used to help pay for major life expenses such as medical bills, home renovations, an engagement ring, wedding or honeymoon. The advantage of a personal loan is it often cheaper than a credit card, which can have a higher interest rate.
This personal loan calculator can show you your estimated monthly payment, interest cost and total cost of borrowing a personal loan.
The best personal loan calculator helps you calculate how much money you can save through credit card consolidation. A personal loan calculator calculates how much interest you save when you consolidate credit card debt. Also, the best personal loan calculator shows your new monthly payment, new total payment and how much faster you can pay off credit card debt.
If you have credit card debt, you are not alone. According to Mentor, there is more than $1 trillion of outstanding credit card debt, making it the third largest consumer debt category. When you have credit card debt, you are likely paying a high interest rate. Plus, the interest is variable rate debt, so when interest rates rise, it becomes more expensive for you to keep that debt outstanding.
You can use a low cost, fixed rate personal loan to help you pay off that credit card debt, save money and pay off your debt faster. Typically, you can repay a personal loan in 3-7 years and lower your interest rate based on your credit profile and demonstrated financial responsibility.
The proceeds of the personal loan are used to pay off the credit card debt, and then you pay off the personal loan.
The interest rate on a personal loan is based on several factors, and typically ranges from approximately 5% – 36%. Online lenders typically offer the lowest personal loan rates. If you have a strong credit profile and income, you may be well positioned to be approved for a personal loan. Lenders evaluate several factors when deciding if you are eligible for a personal loan. These factors may include your credit score, income, debt-to-income ratio, monthly cash flow and other factors.
The best way to consolidate credit card debt is with a personal loan. A personal loan is an unsecured loan typically from $1,000 – $100,000. A personal loan, which is also known as a personal loan, can be used for debt consolidation, home improvements, medical bills and other major life purchases such as an engagement ring, wedding or honeymoon.
Let’s use this personal loan calculator to see how much money you can save. Let’s assume that you have $20,000 of credit card debt at a 15% interest rate and you pay $300 per month. That means it would take you 12 years and $43,200 to repay your original $20,000 of credit card debt.
Personal loans are not bad for your credit, if you manage your credit wisely. The best personal loan calculator shows you how much money you can save through debt consolidation.
If you have credit card debt, you are likely paying a relatively high interest rate, which could range from 10-20%. Based on credit profile, debt-to-income ratio, monthly cash flow and other factors, you could qualify for a lower rate. That lower rate through a personal loan can save you substantial money and help pay off credit card debt faster.
Plus, with a personal loan, you can increase your credit score because you will improve your credit card utilization ratio.
Your credit card utilization ratio is the ratio of your current balance to your credit line. For example, if you have a $10,000 credit limit and have a current credit card balance of $3,000, then your credit card utilization ratio is 30%. Generally, your goal should be to maintain a relatively low credit card utilization.
This personal loan calculator is easy to use. Here is how it works:
Step 1. Enter amount you would like to borrow with a personal loan.
Step 2. Next, enter the interest rate on your personal loan. If you do not know your interest rate yet, then enter an estimated interest rate.
Step 3. Choose a loan term. Most personal loans or personal loans are 3-7 years.
Step 4. You’re all done.
The personal loan calculator will calculate automatically your monthly payment, total interest and total payment.
This personal loan calculator does not make your eligible for personal loans or guarantee an interest rate.
To be eligible for a personal loan, you don’t need to have the best credit. Your interest rate for a personal loan will depend on several factors, which may include your credit score, income, debt-to-income ratio, monthly cash flow and other factors.
There is no magic number for a credit score to get a personal loan. However, most lenders required a minimum credit score of at least 620. Some lenders require a higher minimum credit score of 640-680. The higher your credit score, typically the higher chance of you being approved for a personal loan.
Many borrowers with strong credit profiles (such as 700+) and high income are approved for personal loans with lower interest rates. That said, you can still be approved for a personal loan with low credit. However, you may pay a higher interest rate on your personal loan.