Personal Loans vs. Credit Cards

Personal loans are often "unsecured," meaning they don't require collateral. They typically have lower interest rates than credit cards, making them a popular choice for consolidating high-interest debt.

Calculating Your Payment:

Your payment is determined by the "Amortization" formula. Every month, a portion of your payment goes toward the interest based on your current balance, and the rest reduces the principal.

Impact of Credit Score:

Interest rates for personal loans range from as low as 6% for "Excellent" credit to over 30% for "Fair" or "Poor" credit. Always check multiple lenders before signing.