With consumer loans, there can be large interest rate differences from one lender to another. You can therefore save some money if you spend some time comparing prices. To make this easier, there are various calculators you can use, either on the lenders’ own websites or through independent finance portals.
Such a consumer loan calculator will usually give you an overview of how much you can expect to pay in loan expenses based on the loan amount and repayment period. How much you actually have to pay is calculated individually when you submit a non-binding loan application. The only thing a calculator can do is give you average prices and estimated amounts. On the consumer loan calculator.com you will find a consumer loan calculator that also allows you to indicate your own credit rating.
The company’s best interest rate
Most who offer consumer loans online have some type of consumer loan calculator. What you should be aware of with these is that they do not always indicate the effective interest rate or the total cost of borrowing. Financing companies usually prefer to market their best interest rates, and then establishment and termination fees are not necessarily included in the bill. The loan provider is, however, obliged to state the total loan costs, and the effective interest rate, which includes all the fees, is to be found somewhere on the website. But there is no requirement to give concrete examples with a calculator, and in many cases you have to deal with coarser numbers.
You will also find independent websites with their own calculators, which give you the various offers in a clear list so you can compare prices. These calculators have no more specific figures than the loan providers are willing to provide, but you do not have to wonder if the interest rate is nominal or effective. Such summaries also tend to include the total, so you know how much you have to pay back, not just from month to month, but how much you want to have paid out at the end of the payment period.
Collecting small loans?
In addition, a consumer loan calculator can be a useful tool if you are considering collecting small loans into a larger loan. Then you can calculate what you pay together in fees and interest on various debt items. It is often money to save on a collateral loan and by spending some time on a calculator you can find out just how much.
By using a consumer loan calculator you can get a good indication of how much a consumer loan will cost you.