Before applying for a loan, you use a finance calculator and then you receive a credit quote only for the monthly payments to be different from the amount displayed on the calculator. What went wrong? Did you enter the incorrect figures? Was the calculator misfunctioning? This is not an uncommon scenario and a question we have addressed in our FAQs. Borrowers use an online calculation tool then get an offer or quote which differs from the device result.
The reason for this discrepancy lies in the purpose of these online tools, their functionality and users have a complete appreciation of what the results obtained represent. We strive to provide customers with reliable tools and resources to improve their credit acquisition experience and to provide easier access to information to guide buying decisions in the initial stages.
In providing these online calculator finance tools we want customers to get the most benefit from their use. To support the experience, we highlight key aspects of using an online estimator and correctly interpreting the results obtained.
Purpose and Objective of a Finance Calculator
A finance calculator is an integral part of the Jade Finance suite of online buying tools to assist customers to ascertain loan estimates to be used as a guide. After using the device, users are encouraged to request a credit quote. The function of this device is to compute loan repayments for the amounts that are entered for the term, the interest rate and borrowings.
The result shown per month, may provide buyers with an estimate that they can then use as a guide when considering purchases requiring credit. It’s easy and free to use and allows users to quickly change the borrowing value to compare estimated repayments for goods at varying costs. With these figures as a guide, buyers may focus on goods in their affordable price bracket.
When using this device, the major aspect that users need to appreciate is what is not assessed when making these computations. That is, their credit profile and therefore what interest rate they may be offered. And, the charges that would apply to establishing their particular funding arrangements.
The credit rating, score and profile forms and integral part of a lender’s assessment of each credit application and from there, the rate the lender applies to the loan and from that, the repayments. The interest rates displayed by lenders will usually state that the rate applies to new goods and for borrowers with a good credit score. If a borrower has a sub-good score, they may be assessed as a higher risk and a higher rate offered. If you are unaware of your credit rating, the Moneysmart website offers a range of information on how to find out more.
The other exclusion from estimating tool results is lender charges. There are a range of fees associated with taking on credit. They can vary with the type of credit product and with the lender. As we are accredited with in excess of 80 lenders, until we source the best quote and offer and the right lender, the fees are an unknown quantity. As noted in the disclaimer, these fees are not included in estimator results.
When using an online estimator, users can vary any of the values entered to allow for these contingencies, if desired. The tool has great flexibility and versatility with the easy way that buyers can simply change the figures they enter.
Differentiating Finance Calculator Results and Loan Quotes
Understanding some of the key terminology used in the lending sector may enhance the estimator using experience and the overall credit sourcing process for those seeking credit. Importantly, differentiating between what is an estimate and what is a quote or credit offer.
An estimate as provided by an online device is a general, ballpark figure based purely on the basic data entered. No credit assessment or lender fees are included. When an estimate meets a buyer’s expectations or affordability range, they can proceed to request a quote. An estimate generated by this means is not a quote and is does not signify an application has been submitted.
A quote or offer as sourced by our brokers, requires providing details for the application form. For consumer credit, this is in line with ASIC regulations around Consumer Credit Laws. Requesting a quote does not signify a commitment to proceed with any offer received.
The quote or offer signifies approval for credit to that person or entity by that lender. It includes the best rate we have obtained, applicable to that specific applicant’s credit profile, for the goods as described, and the monthly repayment schedule. When an offer is made, buyers have the opportunity to accept or reject the offer.
When an offer is accepted, the credit contract is prepared and when signed by the buyer, is a commitment.
With these clarifications, users of our tools and resources should be better equipped to source the information they require for their credit needs. At any time, our brokers can be contacted by phone or online to discuss individual requirements.
After using a finance calculator contact Jade Finance on 1300 000 008 for a quote.
DISCLAIMER: NO LIABILITY IS ACCEPTED IF ERRORS OR MISREPRESENTATIONS ARE FOUND IN THIS ARTICLE. THE ARTICLE IS PREPARED AND PRESENTED FOR GENERAL INFORMATIVE PURPOSES AND IS NOT INTENDED TO BE THE SOLE SOURCE OF INFORMATION FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING GUIDANCE AND ADVICE SHOULD CONSULT A FINANCIAL ADVISOR.
