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How we picked theseWhat is the Finder Score?
The Finder Score crunches 6+ types of personal loans across 50+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
What is a seven-year fixed rate personal loan?
This type of personal loan has a term length of seven years and comes with a set-in-place interest rate. Because the interest rate is fixed, your monthly payments will remain the same throughout the entirety of the term — making budgeting for payments simpler.
Two important options to consider
Any loan establishment fees or monthly fees will be added onto your payments. And voila, at the end of the seven years with on-time payments, your debt will be repaid.
You have the option of either taking out a secured or unsecured loan. While you can generally use both types of loans however you please, there are a few key differences between the two.
Secured loans
A secured loan includes an asset in order to be approved for a loan or get a better interest rate. Be careful though, if you default on the loan you’ll be forfeiting that asset you used as collateral.
Unsecured loans
There’s no collateral involved, but you will likely need good credit to land an unsecured personal loan with a competitive interest rate. The lender can’t take your personal property if you default on this type of loan, but your credit will suffer.
Seven-year loan term: Pros and cons
Pros
- Payments for a long term loan are typically lower.
- Budgeting for payments will be simple as your payments will remain the same for seven years.
- A range of different financing options are available.
Cons
- You'll end up paying more in interest with a longer loan term.
- You may be charged a fee for early or additional repayments.
4 questions to ask when comparing offers
As this loan will be with you for seven years, it’s important to compare your options and find the right one. Here are some points to keep in mind:
- What interest rate applies? Compare similar loans to see how competitive the interest rate is.
- How much will you be charged in fees? Check for origination fees, monthly fees, annual fees and any other fees you may be charged. If you want the option of paying back your loan early, check to see if you can do so without being subject to a prepayment penalty.
- Can I use the loan for what I want to? If you want to buy a car, is the vehicle eligible? If you want to consolidate debt, can you bring all of your credit accounts over? Check all aspects of the loan before applying.
- How can you access and manage your account? Since you’ll have this loan for seven years, it’s important to ensure you can manage your account effectively. Check if there is a mobile app or online account tools.
What is a seven-year fixed rate loan going to cost?
A personal loan is large responsibility, and if it’s not handled properly it could make the road to your financial future a bumpy one. When going forward with a loan, make sure that you’ll be able to make all of your payments in a timely fashion.
Here are few different loan amounts with different interest rates to give you an idea of what your monthly payment would be.
| Loan amount | 5% interest rate | 10% interest rate | 15% interest rate | 20% interest rate |
|---|---|---|---|---|
| $5,000 | $70.67 | $83.01 | $96.48 | $111.03 |
| $10,000 | $141.34 | $166.01 | $192.97 | $222.06 |
| $15,000 | $212.01 | $249.02 | $289.45 | $333.09 |
| $20,000 | $282.68 | $332.02 | $385.94 | $444.12 |
Compare more personal loan options
Compare other products
We currently don't have that product, but here are others to consider:
How we picked theseWhat is the Finder Score?
The Finder Score crunches 6+ types of personal loans across 50+ lenders. It takes into account the product's interest rate, fees and features, as well as the type of loan eg investor, variable, fixed rate - this gives you a simple score out of 10.
What can I use a fixed rate personal loan for?
Fixed rate loans are suitable for a range of purposes including:
- Debt consolidation. Use your new loan that has a lower fixed interest rate to pay off any outstanding debts from a credit card or personal loan with high interest.
- Home improvements. Add updates to your home that could increase its value or just make it a nicer place to live, and give yourself seven years to repay what you borrow.
- New or used vehicles. This not only includes cars, but also motorcycles, boats and even jet skis or RVs. Some lenders may have restrictions on using a loan for older vehicles.
- Vacations. If you’re planning on taking a trip you can take out a loan to pay for flights, hotel rooms or anything else you need.
- Weddings. Weddings can be expensive, but a personal loan can give you the extra funds needed for the ideal wedding.
- Other expenses. Realistically, you can use a personal loan for almost anything you’d like. However, remember that a financial product like a loan should always be used responsibly. It’s a good idea not to borrow money if you’re unsure you’ll be able to repay it.
Frequently asked questions
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