How Much Money Can You Get With A Personal Loan?

If you are in the market for a loan to pay for unexpected expenses or to consolidate your debts, you might be wondering how much you will be able to get with a personal loan.

Before going into specifics, it is important to understand what a personal loan is. It is a type of installment loan that allows you to borrow a lump sum from a lender and then pay it back with monthly installment payments.

Typically, these types of loans come with fixed interest rates. This means each payment will be the same throughout the loan term.

Using Online Calculator To Estimate Loan Amount

There are many online calculators consumers can use to find out how much they might be able to get with an online installment loan. The calculator will help you find your eligible interest rates and loan payments. This is how it will work:

Choose your credit score range. If you already know what your score is, you can put it into the calculator to see what type of rates you may qualify for.

If you do not know, you can find many websites online that will allow you to review your score for free, such as Credit Karma.

Next, you will choose the loan amount and term you are hoping to be approved for. For most personal loans, the amount you can borrow ranges from $1,000 up to $50,000.

The loan terms will vary between a few months to 60 months. The longer your loan term is, the less your monthly installment payments will be.

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Understanding Results Of Your Installment Loan Quote

Find out what your results are. This is the last step for most calculators. Your installment loan estimate will be based on the information you entered.

Keep in mind, however, that the estimate does not guarantee you will be approved at all or for the amount and terms given with the calculator.

Monthly Payment

This will be an estimate of what your monthly payment would be based on the loan amount you chose and the interest rate you would qualify for.

APR Estimate

The interest rate for your loan will be based on your credit score. The better your score is, the lower the interest rates you will be able to qualify for. Most of these types of loans come with fixed interest rates.

This means the payments will not change during the loan term. APRs will include origination fees. An origination fee is a single fee that covers the cost of processing your loan through the lender.

Total Interest

The total interest is what you will pay for the full loan amount.

Borrowers who have high credit scores will usually pay less in interest for their loan than someone who has a bad credit score. The longer the term you choose or qualify for, the more in interest you will end up paying.

Pre-Qualifying For Personal Installment Loans

Many online lenders allow consumers to pre-qualify for loans to see what type of interest rate and loan terms they would be able to get.

This pre-qualification option allows borrowers to compare different loans and lenders without affecting their credit scores.

To get a quote, you will have to provide some basic information to the lender including your name, employment status, Social Security number and your annual income.

Amount Borrowed

Additionally, some lenders will want borrowers to provide information about the purpose of the loan and how much they are desiring to borrow.

Many people choose to take out loans for a variety of purposes including paying for medical bills, home renovations, weddings and other unexpected expenses.

Conclusion

As you can see, there are a variety of factors that go into finding out how much you can get for a loan.

Each year, millions of people around the country use these loans for consolidating debts, making home improvements, taking trips and more.

They make the perfect loan choice when you need more than a payday loan can offer.