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Using a line of credit payment calculator is an easy way to figure out your payment amounts. To get started, you will typically need to contact your lender and ask for up-to-date information on the repayment of your credit line. You’ll need to know not only the amount of money you owe in total, but also your annual percentage amount. Once you have this information at hand, you may then input it into an online credit repayment calculator and click "submit" or "calculate." The line of credit payment calculator will then provide you with a projected monthly payment amount.
Many people decide to use a line of credit payment calculator without contacting their lenders first. While you may get a good estimate of your payment amount without contacting your lender, calling for up-to-date information may help you make the payment calculation as accurate as possible. You may find that the totals in your records are a bit off, which may skew your calculation a bit. Additionally, some lines of credit have variable interest rates. As such, you may do well to call your lender for current numbers.
Once you have current numbers for the principal due on your line of credit and your annual percentage, you may begin using a line of credit payment calculator. Typically, these calculators are available for use free of charge and do not require you to provide any personal information. The three basic pieces of information you may need to provide for the line of credit payment calculator are the amount of money you owe, the amount of time you will need to repay the loan, and your interest rate. If you find a line of credit payment calculator that asks for contact information, such as an e-mail address, mailing address, or phone number, you may want to move on to a different calculator. Providing this information may result in contact from a salesperson.
To use a line of credit payment calculator, you may start by entering the amount you owe where it says “principal” or “credit line amount.” Then you will usually add your interest rate where it says "interest rate." You may have to indicate the number of months you will have to repay the line of credit as well. If you will have five years, for example, you would choose 60 months. After hitting "submit," "okay," or "calculate," you will typically be able to view the projected payment amount on your computer screen.
You may also find some line of credit payment calculators that provide other information. For example, you may find one that calculates how long it will take to pay off a credit line if you make only the minimum payments due. Some will also help you figure out the effect of making larger principal payments.