Given below is the
glossary of terms you will hear while applying for pay day loans.
With an understanding of what these terms mean, it will be easier
for you to understand what they are and how they work.
Amortize: To repay a loan
in regular installments, over the agreed term of the loan.
UP
Annual
Percentage Rate (APR): The annual interest rate charged
to the borrower for the convenience of financing the loan. UP
Bad
credit: Is caused by making late payments, skipping
payments, exceeding credit card limits or declaring bankruptcy.
This gives you a poor credit rating that may cause you to be turned
down when you apply for credit. UP
Bankruptcy:
A legal statement of your inability to repay your debts. The debts
are erased by the courts, but you won’t get new credit for 7-10
years.UP
Beacon Score:
This tells of your credit worthiness and is determined by the amount
of activity on your report.. Every application for credit, is counted
as a negative. UP
Cash advance
loan: Aka payday loan, is the money borrowed until
the next payday. The maximum amount is usually $500, and comes with
a very high APR. UP
Collateral:
The assets you put up as security, which can be used to recoup part
or all of a loan. UP
Credit:
When you’re extended credit, you promise to pay, in the future,
in order to borrow today which, in effect, defers repayment of your
debt. UP
Creditworthiness:
A creditor’s measure of your past and future ability and willingness,
to repay your debts. This is often determined in part by your consumer
credit report.UP
Credit History
: Record of the debts you’ve borrowed and repaid in the
past. UP
Default:
Default occurs when you fail to meet the terms of your credit agreement.UP
Liabilities:
Everything you owe to others. UP
Monthly payment:
The principal plus the interest on a loan, paid monthly until the
loan is paid in full. UP
Net Worth:
Calculated by subtracting your liabilities from your assets.UP
Overdraft Checking
Account: This lets you write checks for more than the
actual balance in your account, with a charge for the overdraft.
UP
Principal:
The actual amount borrowed.UP
Rollover:
Extending or renewing the loan by paying the fees for the next two
weeks, or until your next payday. This double your costs for the
loan. UP
Security interest:
The creditor’s right to take all or part of the property
you offered as security for the loan.UP
With the knowledge
of common pay day parlance and the expertise of anycredithistory
with you, taking pay day loans is an easy job. Contact our expert
team for more details.UP
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