In this article, you will find a calculator which will help you compute your monthly interest payment and total interest charged by the bank or financial institution, by considering the total number of months for which the amount has been borrowed and the rate of interest.
Getting a secured loan is possible, if you have a good credit score. The scores depend on your repayment history and you can view your credit score details by asking the concerned authorities to give you a detailed report. Proper financial planning and discipline can surely help you build a good credit score in the future. Ergo, avoid taking loans beyond your repayment capacity and making excessive credit card usage, to keep your score intact.
Calculator for Secured Loans
Disclaimer: Secured loan calculator is based on certain assumptions, which may not be true in every case. It is advisable to consult your financial adviser before taking any decision. Buzzle disclaims any responsibility for any decisions taken by the user based on this calculator.
Advantages of Secured Loans
First of all, getting secured loans is much easier than getting unsecured loans because of the simple reason that banks, and other private lenders, get a collateral against the loan granted to the borrowers. In case the borrower is not able to pay the monthly installments regularly, the bank has the right to sell off the collateral to recover its money.
Secured loan rates are low and attractive because of this very reason. Mostly, home and car loans are secured loans and in this case, the car or home itself, is taken as collateral. Secured loans for people with bad credit are hard to get, yet if you approach your lenders with the right attitude, you will surely be successful in getting them sanctioned. Unsecured loans, on the other hand, do not require borrowers to place any collateral and hence, banks aim at gaining maximum profits by charging high rates of interest on such loans. You will find that these loans are always expensive, as compared to secured loans, in spite of attractive schemes by lenders. Unsecured loans may be very hard to get, in times of an economic recession or credit crunch.
By entering appropriate data, the calculator will compute the monthly payment to be made by you and also the total interest payment which you will be making at the end of the total period. These calculations will help you to understand whether the loan will be putting unnecessary stress on your finances or it’s completely affordable. The secured loan rates, according to the industry experts, are lesser than the rates charged by banks for sanctioning unsecured loans.
From the content provided above, you must have understood that a secured loan is a better option than an unsecured one. When opting for a secured loan, we pay monthly installments more seriously, as we have to protect our collateral or asset, under any circumstances. This timely payment improves our credit score and creditworthiness.