Most people start with the amount they want to borrow. It’s smarter to start with the payment you can actually make every month, even in a tight month, and work backward from there.
How Much Can I Borrow?
Start with a monthly payment that fits your budget. We’ll work backward to the loan amount.
Tip: pick a payment you could still make in a tight month, not your best month. Estimates only; lenders also look at your income, debts and credit.
See what you could qualify forPaid link. We may earn a commission.
How to use the results
Look at the total cost, not just the monthly payment. A longer term lowers the payment but usually means paying more interest overall.1 And compare loans by APR, which includes fees like an origination charge, not just the interest rate.2
Want the full picture first? Read how personal loans work and how to compare offers.
Sources
- What do I need to know about consolidating my credit card debt?, Consumer Financial Protection Bureau.
- What is the difference between a loan interest rate and the APR?, Consumer Financial Protection Bureau.
Advertiser disclosure: Personal Loan Time may earn a commission when you click some links on this page. That never changes what we say. We are not a lender, and this isn’t financial advice.