Are you approaching towards a payday loan cash advance for the first
time? Are you acquainted with all the terminologies or facts that you
will be facing when you approach for the loan? Need not to worry. We have
assembled a brief glossary and definitions to make you understand about
payday loan borrowing. Please go through it and gain the wisdom to make
perfect decisions.
Accrue: Accumulation of interest on the loan taken by you.
Appreciation: Increase in value of assets due to effluxion of time.
Application: Borrower’s first step to get the loan in which he
is supposed to give all the necessary information about him along with
different documents.
Asset: A valuable thing that you have.
Borrower: - Person who borrowed a loan.
Capitalization: - Addition of unpaid accrued interest with your capital
loan amount by which both Loan amount as well as cost to loan increases.
Credit Agencies: - Organizations that collect consumer’s credit
information and supply it to potential lenders in the form of a report.
Credit History: - Gives information regarding borrower’s previous
activities regarding repayment or timely payment of debts. It acts as
a guide to the potential lender.
Credit rating: - Your credit rating shows your credibility to pay off
your debts. It is a grading or ranking provided to you by credit agencies.
Credit Report: - It is a document about your credit history. All your
past debts and their payment history are given in detail in this report.
Credit: What you owe today, you have to repay it tomorrow.
Credit Worthiness: Credit worthiness is a debtor’s ability to
pay-off his debts in future. ?Debts: - The amount owed by you to others.
Interest: Additional amount charged on the principal.
Interest Rate: Additional amount paid by the borrower for any loan.
Usually it is expressed as a percentage.
Liability: The amount you owe to others is your liability.
Lender: Individual or organization that provides money as a loan to
the consumer against a certain charge called “Interest”.
Loan: The amount which is borrowed from an individual or an organization.
The money usually is repaid with an interest.
Loan applicant: Any person who approaches to a lender for a loan is
a loan applicant.
Monthly Payment: The amount consisting of principal and interest paid
to the lender on a monthly basis.
Payment: Monthly installments paid by the borrower to the lender in
order to repay the loan.
Repayment: Procedure of paying-off Lenders/Creditors loan.
Simple Interest: Allocation of your monthly payment between interest
and the principal amount based on the amount borrowed, term of the loan
and the balance amount due at a certain point of time.
|
