Credit calculator for personal needs – why is it useful?
One of the most important issues to consider when deciding on applying for a loan is the monthly rate estimate. Once you have decided on the amount needed to resolve unforeseen situations, purchase of a building or a car, you need to use a credit calculator to simulate the repayment schedule.
Why use a credit calculator?
The decision to apply for a loan is a difficult one. Once you have decided on the type of credit you need (personal loan, mortgage, First Home loan, car loan, etc.) it is necessary to form a first idea about the rates you will pay. This way, you will have more information about the financial risk you will take on. Keep in mind that any credit can affect your monthly budget, which is an additional monthly cost that you will have to incur. you take into account, regardless of its value. Before applying for a loan, ask yourself the following questions:
- What will be the monthly rate?
- What is the interest rate?
- What will be the total amount to be repaid?
The most convenient solution to answer these questions is the loan calculator.
How to use a credit calculator?
Credit calculators are provided by most banking institutions and IFNs. These are easy to use, the steps are very intuitive. In most cases, in order to calculate the monthly rate due, it is necessary to select the type of loan you want, the amount needed, and the duration of the loan. In the case of banking institutions, you will have to specify the currency, whether or not you collect the salary or other income from that bank, and additionally you will have to select the type of interest (fixed or variable).
The Benefits of a Credit Computer
At present, financial education plays an extremely important role. Since any financial decision can drastically affect your “financial health”, it is extremely important to be informed about how to make a loan, as well as the costs involved. Financial education will help you not to fall into the “debt trap”. By using a credit calculator, you can analyze every detail of the offer and you will be able to select the most suitable one. To choose a good loan, you need to know what a loan represents, what types of loans there are, what the interest rate is, what the DAE represents, as well as other important information.
Besides the efficient control and detailed analysis, by using a credit calculator, you can make a quick calculation of credit rates online, easily and quickly, thus saving your time spent in banks.
What is DAE?
Effective Annual Interest (DAE) – is the present value of all present and future commitments, draws, reimbursements and costs, agreed by the creditor and the consumer for a period of one year. The DAE formula is applicable at the level of an entire year, and when it is used for a short credit period, as is the case with the credit offered by lite lender, a very high value is generated. DAE remains fixed throughout the credit period.
What does monthly interest mean?
Monthly interest – represents the amount paid to the creditor for granting the loan.
What is the total amount to be repaid?
The total amount to be repaid – reflects the amount borrowed plus interest and possible costs related to the loan. Before applying for a loan, ask yourself: do I need this loan? Can I pay this debt? At lite lender we support responsible lending and we encourage you to request a personal loan in 3 installments only when an unexpected situation arises or when you have found a super offer and you do not have the necessary money. Think long-term before you take a loan and analyze all the problem data.