Personal Loan Calculator

What is a Personal Loan?

A personal loan is an unsecured loan (no collateral required) that you repay in fixed monthly installments. They are commonly used for debt consolidation, home improvements, medical bills, or major purchases.

Typical Interest Rates by Credit Score

• Excellent (720+): 6-12% APR
• Good (690-719): 12-18% APR
• Fair (630-689): 18-25% APR
• Poor (below 630): 25-36% APR

Common Fees

• Origination Fee: 1-8% of loan amount, deducted at funding
• Late Payment Fee: Typically 5% of payment or flat fee
• Prepayment Penalty: Some lenders charge for early payoff
• NSF Fee: Returned payment fee

Personal Loan vs Credit Card

• Personal Loan: Fixed rate, fixed term, fixed payment
• Credit Card: Variable rate, revolving, flexible payment
• Personal loans often have lower rates than credit cards
• Use personal loan for specific large expenses with payoff plan

When a Personal Loan Makes Sense

• Consolidating high-interest debt at a lower rate
• Planned expense you can pay off in 2-5 years
• Need a fixed payment for budgeting
• Building credit with on-time payments

When to Avoid Personal Loans

• For recurring expenses you cannot afford
• If rate is higher than current debt
• For wants (not needs)
• If you have unstable income

Tips for Getting Approved

• Check your credit report for errors
• Compare multiple lenders (rate shopping)
• Consider a co-signer if needed
• Provide stable income documentation
• Keep debt-to-income ratio low