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Whether you are searching for a personal loan, student loan, car loan, or a mortgage, using a loan calculator can be a major part of choosing a lender.

Before agreeing to a loan, it is important to know the amount of interest your lender will charge you and therefore how much the loan will cost over time. This where our loan calculator comes in handy.

For answers to your most pressing loan questions, take a look at our Q & A below. We cover the purpose of a loan, how to get a loan in 2019, and what to consider before applying.


What is a loan calculator used for?

If you are in the market for a loan, be sure to use a loan calculator to help you decide which lender to choose.

Depending on what information you are looking for, a loan calculator can determine your loan balance or monthly payments.

If you play with the numbers, you can find out how much of a loan you can afford based on the monthly payment you are comfortable with.

Additionally, when you input the possible interest charges quoted by your lender, you will discover how much your loan will cost you.

What is the purpose of a loan?

There are many purposes of a loan. You can use it for major purchases, like a home, car, or school loans, or to help you get through to next payday.

They are mainly used when you are short on cash. Loans cover the gap between the money you have on hand and what you need to spend.

Many people do not have the cash on hand for big-ticket purchases like homes or cars. Loans have made these things more accessible as they continue to rise in price.

What is a good reason to get a personal loan?

Personal loans are a type of unsecured installment loan.

Upon approval, you receive a lump sum of cash and you pay it back in monthly installments. Below are common reasons for obtaining a personal loan.

Debt Consolidation

Some people secure a loan for the purposes of debt consolidation. Loans are appealing to many people because they can merge their bills into one payment and often times at a better interest rate.

Unexpected Expenses

Also, unexpected expenses and emergencies come up. A loan could cover medical expenses or to pay for a major home repair.

Life Events

Sometimes people take out loans to finance life events, like vacations or weddings. These are important experiences, so if you are comfortable with taking out a loan for this reason, then go for it.

Just make sure to do plenty of research to find the loan that's best suited to your situation.

What should I consider before getting a loan?

The Interest Rate

One thing you should consider is the loan rate being offer to you. Thoroughly research for the lowest rate available to you. The higher the interest rate, the more your loan will cost over time.

The Fees

In addition to the interest rate, also research what type of fees may be associated with your loan.

Fees like origination fees, appraisal fees, underwriting fees, administration fees, and processing fees may be in your monthly payment. Know what you are paying for.

The Affordability

Another thing to consider is how much you can afford a month. You want to be able to make monthly payments comfortably.

Always assess your overall financial situation to before making the commitment.

Your Credit Rating

Knowing your credit score is important during this process. The type of credit you have will qualify you for different kinds of loans.

Try obtaining a few loans quotes to get an idea of what you would qualify for before you apply.

Where can I get a loan in 2019?

There are many ways to get a loan in 2019. There a variety of lenders available to you depending on any number of factors such as the loan amount you're looking for and your credit score.

The Bank

The first stop is often your bank. If you already have a relationship with your bank, it can make the process easier.

A Credit Union

There are plenty of other options in addition to your bank. Try a local credit union. They often times have competitive interest rates.

Online Lenders

If you look online, you will also find many more lenders. There is also peer to peer financing available through some online lenders.

How do I apply for a loan?

To prepare to apply for a loan, check out your credit score. Your creditworthiness is a huge determining factor during the approval process. It will also affect the interest rate offered to you.

Be aware of the loans you qualify for. Each time you apply for a loan, an inquiry goes on your credit report.

You can ask lenders what the minimum credit score requirements are to avoid applying for loans you do not qualify for. Then, input the loan details into a loan comparison calculator prior to making your decision.

Gather all documents and information necessary to apply. Lenders need to gauge your financial situation.

They often require proof of income. They also need to know details about whether you rent or own and how much your housing payment is.

Can you pay off a personal loan early?

In most cases, you can pay off a personal loan early. This is a great way to save on interest because as you pay down your balance, you're charged less interest.

Exit Fees

However, some loans do charge a prepayment penalty. Sometimes known as exit fees, the borrower pays a prepayment penalty when paying off a loan before the end of the term.

Be careful to read your contract and double check with your lender if you have questions.

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