Use Loan Calculator Tools to Calculate Your Finance Deals

The Different Types of Loan Calculator:
There are a number of different types of calculator available on lender and broker websites. These include personal loan calculators, a mortgage calculator and a car loan calculator. Australia based consumers can find out and compare monthly repayment costs, interest rates and other terms of the loan products available in the marketplace.

The Advantages of Using a Loan Calculator:
There are a number of advantages associated with using a loan calculator. The first being that it is very quick and easy to determine if a new loan is affordable. Since you can immediately see illustrations of how much the monthly payment would be, it is a simple matter to see if you can afford this each month. Additionally, with a car loan calculator, Australia based consumers can quickly compare dealership finance offers to determine if they are competitive. There is no need to return home from the dealership and spend hours on the phone, you can use a calculator tool on your Smartphone right there in the showroom.

Another great advantage of using a calculator is that you can compare deals. Most calculator tools will highlight the best deals and allow you to perform a side by side comparison of interest rates, terms and monthly payments. This is far easier than spending time ringing around lenders and scribbling down notes. You can even play around with the length of the loan term to see if you can save money on interest payments by reducing the term without compromising affordability.

The Potential Drawbacks:
The main drawback of using a car loan calculator Australia based consumers should be aware of is that they are only as accurate as the figures you provide. If you miscalculate your expenses or the balances on existing debt, the calculation could be completely wrong. Additionally, while the calculator will only show the finance deals available to the company. This means that if you choose to use a calculator from a single lender or a small broker with only a small panel of lenders, you will not gain a true picture of the available offers. It is always a good idea to find a site for a broker who not only has a good reputation but can provide you access to a diverse panel of lenders.
Another potential drawback of using a calculator is that it will not take your credit history into account. While some calculators do allow you to select whether you have a good, average or poor credit history, this may not be accurate. You may find that when you actually obtain a quote, the interest rates quoted are not available to you. On the plus side, if your credit history is actually better than you thought, you may find you can secure an even better deal.