Looking to take out a personal loan? Sun Loan can help! Perhaps the most important piece of information when taking out a personal loan is knowing how much you will be paying each month. We’ve made that easy for you with our personal loan payment calculator! Once you have an idea of the details of your personal loan–such as total loan amount, interest rate, and how long the loan term is–simply plug the numbers into our calculator below to find out a rough estimate of your monthly payment.
Now that you have an idea of what your personal loan’s monthly payment would be, you can get started on your personal loan application–click here to apply today!
Personal loan calculator FAQs
What are the different types of personal loans?
Before taking out a personal loan, it’s important to know what types of personal loans are available to you. Most personal loans are either secured or unsecured. A secured personal loan requires that borrowers offer collateral, or something of value, to the lender–such as the rights to their home or car, to protect the lender in case the loan amount can’t be paid off. Secured loans include mortgages, auto loans, home equity lines of credit, business loans, and land loans.
Unsecured loans do not require collateral. However, because lenders are not protected by collateral like they are with secured loans, they often charge higher interest rates or require high credit scores for unsecured loans because the loan is a greater risk for them. To learn more about different types of personal loans, read our blog post on the topic.
What determines the cost of a personal loan?
When you’re looking to figure out what a personal loan will cost you, the payment calculator above is a good place to start. That’s because you likely already have the necessary information to figure out the cost of a personal loan:
- The total amount of money you’re borrowing
- The interest rate
- The length of the loan
With this information, you can use the calculator to see how much interest you will pay over the course of the loan. To find a more exact cost of your personal loan, be sure to ask the lender about any fees they may charge so you can add that to the total cost of the personal loan.
Learn more about how to qualify and apply for a personal loan by reading our blog here.
How does my credit score affect a personal loan?
Your credit score goes a long way toward determining what kind of terms you’ll get on a personal loan. Why? Because if you have a good credit score and credit history, you’re likely to qualify for much lower interest rates than if your credit score is low. This is because a good credit history shows that you’re a trustworthy borrower who makes payments on time and has built their credit. And that is less risky for a lender, which is why they can offer better interest rates. With a low credit score, a borrower isn’t as easily trusted, so the lender charges high interest rates to protect themselves.
What’s the difference between APR and APY?
It can be easy to confuse Annual Percentage Rate (APR) and Annual Percentage Yield (APY). What’s the difference between the two?
- Annual Percentage Rate (APR) is what you pay to take out a loan, which is the interest rate plus fees. Sometimes APR is the same as the loan’s interest rate, as is the case with most credit cards. An APR can also be fixed (the rate stays the same throughout the loan term) or variable (the rate may change based on market conditions). The higher the APR, the more money you’re paying for your loan.
- Annual Percentage Yield (APY) is the actual rate of return that will be earned in one year if the interest is compounded. These rates are what you’d look for when opening a checking account, savings account, or certificate of deposit (CD). The higher the APY on your account, the more interest you will likely collect.
APY is similar to the APR used for loans. The APR shows the percentage that the borrower will pay over a year in interest and fees for the loan. However, only APY takes into account compound interest.
Find more information on personal loans
The more you know about personal loans, the better financial decisions you can make for your situation. Fortunately, Sun Loan has you covered! We have many helpful resources, written by our loan experts, you can use to learn all you need to know about personal loans:
- How to Take Out a Personal Loan in 5 Steps
- How to Get a Loan Without a Bank Account
- Are Personal Loans Installment or Revolving Credit Accounts?
- Different Types of Personal Loans
Learn the basics of finance and taxes
By learning the basics of finance and taxes, you become more educated and informed when it comes time to make important financial decisions. In addition to our personal loan resources, we offer plenty of articles that cover personal finance and tax-related topics. Check them out here:
Sun Loan is here to help you achieve your financial goals, and one way we assist you is by providing you with valuable knowledge and tools so you have a better understanding of what financial choices are right for you. Besides these tools, however, we are always there to provide trustworthy guidance and outstanding customer service whenever you need us. We invite you to stop by one of our many local branches or call us at (800) SUN-LOAN so we can help you in any way we can.