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Why equal principal amounts can produce unequal purchasing power
Two offers can state the same loan amount while providing different money after deductions.
Two offers can state the same loan amount while providing different money after deductions. Comparing only principal treats those advances as equivalent before the fee handling has been understood.
A usable-proceeds column reveals the difference without declaring a winner. The repayment comparison then follows the actual balance, so a charge is neither ignored nor counted twice.
- Two offers can state the same loan amount while providing different money after deductions.
- A usable-proceeds column reveals the difference without declaring a winner.
Records and amendments
Security changes the questions worth asking
Keep the versions and their dates together when comparing figures. This helps identify the precise question without assuming that every difference proves an error or an unfair charge.
Definitions
- Total repayable
- Sum payable under the stated schedule and its assumptions; contingent charges and changes must be considered separately.
- Amount received
- Money actually made available to the borrower, which can differ from the stated loan amount if a charge is deducted.
Direct answers
- What does this explain: why equal principal amounts can produce unequal purchasing power?
- Two offers can state the same loan amount while providing different money after deductions. Comparing only principal treats those advances as equivalent before the fee handling has been understood.
- Which details matter for this question: why equal principal amounts can produce unequal purchasing power?
- Comparing only principal treats those advances as equivalent before the fee handling has been understood.
- What should be checked next concerning why equal principal amounts can produce unequal purchasing power?
- A usable-proceeds column reveals the difference without declaring a winner. The repayment comparison then follows the actual balance, so a charge is neither ignored nor counted twice.