APR (annual percentage rate)
The APR is the annual interest rate charged to the borrower for the convenience of financing the loan.

AER
AER is the annual interest rate you would have to pay if you repaid a loan within a one year term.
AER is short for Annual Equivalent Rate.

Amortize
To amortize is to repay a loan, in regular installments, over the agreed-upon term of the loan.

Approved - Being approved, in terms of payday loans, means that you have met the criteria issued by the lender in order to obtain the loan.

Apply - The process of requesting funds from a payday loan lender. This usually involves providing the requested information to the lender. For example, your bank statement, social security number, account number, etc.

Asset
Your assets are made up of anything you own that has a cash value, including property, goods, savings and investments.

Assumption
The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money since this is an existing mortgage debt.

Average Daily Balance
The average daily balance is a method used to calculate finance charges. It is calculated by adding the outstanding balance on each day in the billing period, and dividing that total by the number of days in the billing period. The calculation includes new purchases and payments.

Bad credit
When you have bad credit, you have a poor credit rating, and you can be turned down when you apply for credit. This is caused by making late payments, skipping payments altogether, exceeding your credit card limits or declaring bankruptcy.

Balance
The balance is the remaining amount owed.

Balance Transfer
Moving a balance (debt) from one credit card to another. This is often done with special checks or forms, or may be offered as an option on some credit card applications. The usual reason is to shift an ongoing debt to an account with a lower interest rate.

Bankruptcy
When you declare bankruptcy, you’re legally stating that you’re unable to repay your debts. The debts are erased by the courts, but you won’t be able to get new credit for 7-10 years. Bankruptcies are recorded on your credit report. Bankruptcy agreements vary but there are two types of agreements that most people choose: Chapter 7 and Chapter 13.

Chapter 7
In a Chapter 7 agreement, the court resolves most debts by selling assets and property so that the filer is given a fresh financial start. The court takes all assets including cars, homes, furnishings, jewelry or anything else of value. The assets are sold to pay off the debt. A Chapter 7 filing will remain on a credit report for 10 years.

Chapter 13
In a Chapter 13 agreement, the court creates a debt repayment plan that allows the filer to keep their property. In order to file Chapter 13, a person must have a source of income and promise to pay part of their income to creditors. A Chapter 13 filing will remain on a credit report for 10 years. With Chapter 13, there is a better chance of obtaining future loans and credit.

Bank Statement - An official record outlining the activity of your checking account for a given period of time (usually a month), issued by your bank.

Beacon Score
Your beacon score is recorded on your credit report, telling creditors if you’re creditworthy. It’s determined by the amount of activity on your report, including positive factors like timely payment of loans, and negative factors like late payments. Every time you apply for credit, it’s counted as a negative on your beacon score.

Borrower
Also referred to as Applicant, this is the person or group applying for a loan.

Borrower's Integrity
An undisclosed rating of the credit-worthiness of an applicant. Payday loan lenders use a number of factors for determining this rating, including (but not limited to) credit history and any outstanding or pending payday loans.

Cash Advance
Same as a payday loan, this is a provision of cash borrowed against the applicant's forthcoming paycheck.

Cash Avance loan
A cash advance loan, or a payday loan, consists of money borrowed until the borrower’s next payday.

Checking Account
The applicant's account with a banking institution. Lenders normally require the direct deposit feature on this account to be able to wire the funds directly into the account.

Closed-end Credit
Generally, any loan or credit sale agreement in which the amounts advanced, plus any finance charges, are expected to be repaid in full over a definite time. Most real estate and automobile loans are closed- end agreements.

Collateral
Property that is offered to secure a loan or other credit and that becomes subject to seizure on default. (Also called security.)

Cosigner
Another person who signs for a loan and assumes equal liability for it.  

Collateral
Collateral consists of assets that you put up as security, which can be used to recoup part or all of a loan that’s in default.

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.

Credit Card
Any card, plate, or coupon book that may be used repeatedly to borrow money or buy goods and services on credit.

Creditworthiness
Creditworthiness is a creditor’s measure of your past and future ability, and your willingness, to repay your debts. This is often determined in part by your consumer credit report.

Credit Check
The process of reviewing information on the applicant's capability to abide to their financial responsibilities. Most payday loan lenders do not require this.

Credit History
Your credit history is a record of the debts you’ve borrowed and repaid in the past

Credit Scoring System
A statistical system used to determine whether or not to grant credit by assigning numerical scores to various characteristics related to creditworthiness.

Default
Default occurs when you fail to meet the terms of your credit agreement.

Direct Deposit
The common term used to refer to the process of transferring funds (making a deposit) into your account electronically.

Fee
Payday loan lenders normally charge a fee against the amount borrowed; the higher the amount the higher the fee. It's considerably low compared to APR charges from credit card companies.

Flexible Loan
A Flexible Loan is when you have flexibility in the amount of your monthly payment. You can overpay one month and underpay the next as your finances allows.

Interest
The interest charged on a loan is added to the principal to equal the total amount to be repaid by the borrower. It’s sometimes referred to as the cost of borrowing.

Liability
Legal responsibility to repay everything you owe to others.

Lien
a notice a creditor attaches to your property that tells the world that you owe the creditor money. You cannot sell the property without paying off the creditor because the lien makes the "title" (history of ownership) cloudy and a new owner won't buy under those conditions.

Monthly payment
Your monthly payment is made up of the principal plus the interest on a loan, paid monthly until the loan is paid in full.

Net Worth
Your net worth is calculated by subtracting your liabilities from your assets.

Negative Amortization
Repayment schedule calling for periodic payments that are insufficient to fully amortize the loan. Earned but unpaid interest is added to the principal, increasing the debt. Eventually, payments must be rescheduled to fully pay off the debt. phentermine xenical

Open-end Credit
A line of credit that may be used repeatedly up to a certain limit, also called a charge account or revolving credit.

Open-end Lease- A lease that may involve a balloon payment based on the value of the property when it is returned. (Also called finance lease.)

Overdraft Checking Account
An overdraft checking account gives you a line of credit that lets you write checks for more than the actual balance in your account, with a charge for the overdraft.

Payday Loan
Like a cash advance, this is a loan taken out based on an expected paycheck that will cover the loan amount and the fees acquired with it.

Paycheck
The applicant's weekly, bi-weekly, or monthly income that they obtain from their employers.  

Principal
The principal of a loan is the actual amount borrowed.

Rollover
When you rollover your payday loan, you extend or renew the loan by paying the fees for the next two weeks, or until your next payday. Every time you do this, you double your costs for the loan.

Security interest
Security interest is the creditor’s right to take all or part of the property you offered as security for the loan.

Service Charge
A component of some finance charges, such as the fee for triggering an overdraft checking account into use.

Security Interest
The creditor's right to take property or a portion of property offered as security.

Statement
The monthly bill from a credit card issuer that describes and summarizes the activity on an account. A statement includes the outstanding balance, purchases, payments, credits, finance charges and other transactions for the month. also see phentermine prescriptions

Statement Date
The date on which a statement is generated, and the month's finance charges (interest) are added to the balance.

Surcharge
An extra charge imposed on those who purchase with a credit card instead of cash. (Currently, surcharges for credit card purchases are prohibited.)

Wire Transfer
The computerized process by which money or funds are moved from one account to another electronically. This is a very quick way of channeling money into an account.