General information about borrowing money
Loan calculators on the internet
The internet is a good place to find lots of examples of loan calculators. New websites are appearing all the time. Type ‘loan calculator’ into your internet search engine and you will get millions of hits. The information won’t always be independent – some are commercial sites selling books or financial products and services.
The website of the Australian Securities and Investments Commission is a good place to start.
Comparing product features
You can find out about interest rates, fees and other features of credit cards and other forms of credit from comparison tables published in a number of magazines and newspapers and on the internet. For example:
The Consumer Credit Code
The Consumer Credit Code is a law governing most consumer lending in Australia. It protects the interests of consumers through provisions for disclosure, accessibility of useful information and enforcement mechanisms (amongst other things). It applies to all providers of regulated consumer credit such as banks, building societies, credit unions, finance companies and other financiers.
The code does not cover all types of credit. Exceptions include: investment and business loans, pawnbroking, some credit that is for a period of 62 days or less and credit provided without any prior agreement, for example, when a cheque account becomes overdrawn but there is no agreed overdraft facility.
If there’s a problem
If you think you’ve paid fees you shouldn’t have or have some other problem with an investment product, contact your lender and explain the issue.
If you’re not able to resolve the problem directly with your service provider, there are a number of organisations you can go to. See Getting information and advice.
Credit fees
Fee |
When it may apply |
Who charges the fee |
Administration fee (also called ‘account-keeping fee’) |
An ongoing fee that may be charged on some loans at regular intervals – such as monthly or yearly, depending on the loan and depending on the provider. |
Some lenders or credit providers |
Annual fee |
Most credit cards now have an annual fee which is applicable to all card holders on the credit card account. |
Some lenders or credit providers |
Application fee |
May be charged when applying for a loan, and may still be payable even if your application is not successful. |
Some lenders or credit providers |
Cash advance fee |
Usually applied when obtaining cash on your credit card – it may be charged as a percentage of the total amount advanced. |
Some lenders or credit providers |
Dishonour fee |
May be charged if you have tried to make a payment with a direct debit, and the payment was declined because you have exceeded your credit limit (if paying with a credit card) or didn’t have enough funds in your account (if paying from a bank account). You may also incur a charge from the business you were trying to pay, e.g. a gas company if the direct debit was intended to pay your gas bill. |
Some lenders or credit providers |
Early termination fee |
This fee may apply to a loan if you pay out the loan earlier than within the stated term of the loan. |
Some lenders or credit providers |
Establishment fee |
This one-off fee may be applicable when you take out a personal loan or other form of loan. |
Some lenders or credit providers |
Government taxes and charges |
Government taxes, such as stamp duty, may apply to some credit arrangements depending on the state or territory you live in. |
Governments |
Merchant fees (also known as surcharge fees) |
Some merchants may charge a fee when you pay for goods or services using your credit card. Merchants are required by law to tell you if a fee applies for credit card transactions and how much that fee is. |
Some merchants |
Overdrawn account fee |
If you have exceeded the limit on your overdraft or your credit card, you may incur an overdrawn account fee. |
Some lenders or credit providers |
Overdue payment fee (also known as late payment fee) |
This fee may apply if you miss a payment on your credit card, or if you miss a repayment on a loan. |
Some lenders or credit providers |
Reward program fee |
Of the credit cards that offer reward programs for card holders, many charge an annual reward program fee (this is in addition to the annual fee for the credit card itself). |
Some lenders or credit providers |