Credit Score Loan Cost Calculator

See how much money a bad credit score really costs you when you buy a home, finance a car, or use a loan to consolidate debt.

You know that bad credit means higher interest rates, which in turn, mean more money paid over the life of each loan you take out. But do you really understand exactly how much a lower credit score costs you?

With this in mind, Consolidated Credit has designed this credit score cost estimator below to help you assess the cost of bad credit – and the big savings associated with good credit. You can plug in different types of loans and different loan amounts to see how much interest you’d pay with different credit scores. This way, you can know what you’ll pay for a new loan at your current credit score level, versus what you’d pay if you take steps to improve your credit score before you apply.

Is it the best time to borrow?

Loans can help you achieve key goals in your life, like buying a home and even getting out of debt. But you need to make sure your credit is ready, so you can secure the loan you need. A better credit score can save you thousands on an auto loan and tens of thousands on a mortgage.

If you use this credit score assessment and see your monthly and total cost of borrowing could be better with a higher score, consider waiting. Take time to build credit before you borrow.

A note on using personal loans for debt consolidation

One common use of personal loans is to consolidate debt.  You use the funds from the loan to pay off existing debts, such as credit cards. This can be beneficial if you have a good credit score because it offers a lower fixed-rate than the high adjustable rates of credit cards.

On the other hand, using a debt consolidation loan when you have bad credit doesn’t always provide the benefit that you need. If the rate you qualify for is too high, it won’t provide as much cost savings. It can also still take just as long to pay off your debt.

If you have a bad credit score, you may want to explore other options for debt relief before you decide to apply for a loan.