What is credit worthiness? Are you credit worthy?

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Have you ever wondered what a finance provider such as ourselves looks for when we assess your application for one of our super quick personal loans? Several factors are considered to work out your creditworthiness to assure us you’re able to comfortably handle the debt.

A break down of the main points of creditworthiness

Credit worthiness is the assessment of an applicant to determine the likelihood that he applicant will default on debts.

·  Creditworthy individuals are considered to be a ‘good risk’.

·  They’ll have a track record of managing, and repaying debts on time.

·  They’ll also have demonstrated an ability to manage debt.

 

The Oxford Dictionary’s definition of ‘creditworthy’ is simple: “(Of a person or company) considered suitable to receive credit, especially because of being reliable in paying money back in the past.”

What do we look at?

Your credit file

We’ll look at your credit file (your history of credit applications and interactions). You can ask to see a copy of this file to see where you stand (and also to ensure your info’s accurate). The credit reporting bodies we use are:

 

Dun & Bradstreet Australia                                                        

Veda Advantage Australia

Experian Australia

 

Your income

We’re not expecting you to be earning thousands of dollars per month. Instead, we’re looking for proof of steady, regular income—each week, each fort night or each month.

 

Your expenditure

It may seem strange that debt can make you more (and not less) creditworthy, but we like to see evidence of your ability to manage debt (and pay things down). It’s a question of balance between your income and your expenditure, and making sure your debts are well within your capacity to handle.

 

Why does it matter if I am credit worthy?

It matters to you

We don’t want our customers to take on debts they can’t afford. We don’t want you to become slaves to your personal loan; we don’t want you to slide into financial distress.

We want to help our customers when an unexpected cost arises and make their lives easier, not harder. Used responsibly, credit can help you get out of a tricky situation. But we don’t want our customers to borrow more than they can afford.

 

It matters to us

We take our role as responsible lenders very seriously. Lending recklessly is not good for us, or for our shareholders. It’s not good for our community and, ultimately, it’d let you down, too.

That’s why we place such importance on creditworthiness. That’s why it matters.

 

 

 

 

How customers rate Jacaranda

What is credit worthiness? Are you credit worthy? Overall rating: 4.8 out of 5 based on 60 reviews.

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Fast & Safe Loans

Small Personal Loan

Loan Amount

Minimum
$300


Maximum
$2,000

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Terms

Minimum
12 Months


Maximum
12 Months

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Costs

Up to 20% Establishment Fee
+ monthly fee up to 4%

Jacaranda Finance does not charge an annual interest rate on SACC loans. These small amount loans incur 'fees' instead of interest. The maximum comparison rate on our loans between $300 and $2000 is 199.43%.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
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Examples

Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Loan Amount of $1,000 over 12 months repayable weekly (50 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $480 (fees based on 4% per month over 50 weeks) = $1,680 total repayable in 50 weekly installments of $33.60.

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Medium Personal Loan

Loan Amount

Minimum
$2,100


Maximum
$4,600

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Terms

Minimum
13 Months


Maximum
24 Months

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Costs

Annual Percentage Rate (APR) starts at 20.56%
Comparison Rate is 20.56% per annum.

This comparison rate is based on a medium amount credit contract of $2,500 repaid over 2 years with a $400 establishment fee and APR of 20.56%.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
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Examples

Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $555.83 (reducing interest*) = $3955.83 total repayable over 18 months with weekly installments of $50.71.

Loan Amount of $4,500 over 24 months repayable weekly (104 weekly repayments). $4,500 (Principle Amount) + $400 (Establishment Fee) + $1081.85 (reducing interest*) = $5981.85 total repayable over 24 months with weekly installments of $57.51

* Reducing interest means that the 20.56% APR is applied to the outstanding balance on a loan. When a loan repayment is made, the loans outstanding balance goes down and the APR is applied to that lower balance. Therefore, the interest component of the loan will constantly reduce (as long as repayments are being made!) - thus it is called reducing interest.
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Large Personal Loan

Loan Amount

Minimum
$5,000


Maximum
$10,000

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Terms

Minimum
13 Months


Maximum
36 Months

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Costs

Annual Percentage Rate (APR) is 12%
Comparison rate is 19.88% per annum.

WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate
Invoice Icon

Examples

Loan Amount of $5,000 over 18 months repayable weekly (78 weekly repayments). $5,000 (Principle Amount) + $1831.16 (Interest) = $6831.16 total repayable over 18 months with weekly installments of $87.57.

Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5041.72 (Interest) = $15041.72 total repayable over 24 months with weekly installments of $144.63.

* Reducing interest means that the 19.88% APR is applied to the outstanding balance on a loan. When a loan repayment is made, the loans outstanding balance goes down and the APR is applied to that lower balance. Therefore, the interest component of the loan will constantly reduce (as long as repayments are being made!) - thus it is called reducing interest.
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