Cash Advance and Payday Loan Glossary

In an effort to make understanding the payday loan process easier, we offer the following list of commonly used payday loan terms and their definitions.

• 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: This is the process of providing the requested information to the lender. For example, your bank statement, social security number, account number, etc.
• Accrue: Accumulation of interest on the loan taken by you.
• 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.
• 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.
• Auto Title Loan: A short term loan where you use your car as collateral. Auto Title Loans are also commonly referred to as Title Loans, Car Title Loans, and Automobile Title Loans.
• 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: A term used to describe a poor credit rating. Common practices that can damage a credit rating include making late payments, skipping payments, exceeding card limits or declaring bankruptcy. "Bad Credit" can result in being denied credit.
• Bankruptcy: Bankruptcy is a legal declaration of the inability to repay debts. Bankruptcy should be viewed as a last resort. It will have a severe impact on a credit rating and will remain on a credit report for ten years. Furthermore, bankruptcy is not a solution in all cases. Federal student loans, Federal tax debt and child support are all exempt from bankruptcy protection. Bankruptcy agreements vary but there are two types of agreements that most people choose: Chapter 7 and Chapter 13.
• Bank Statement: This is a document outlining the activity of your checking account normally issued by your bank.
• Balance: The total amount of money owed. It includes any unpaid balance from the previous month, new purchases, cash advances, and any charges such as an annual fee, late fee or interest. The balance should not be confused with the monthly payment (the minimum payment allowed each month), which is generally 2% - 5% for revolving credit cards.
• 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.
• Borrower: Commonly referred to as applicant, the borrower is the potential client or customer intending to obtain the loan.
• Borrower's Integrity: This is an undisclosed rating of the applicant, normally ruined when the applicant applies to too many lenders at the same time or has a bad reputation with another payday loan lender.
• Capitalization: Addition of unpaid accrued interest with your capital loan amount by which both Loan amount as well as cost to loan increases.
• Cash Advance: Same as a payday loan, this is a provision of cash borrowed against the applicant's forthcoming paycheck. Cash advances are also commonly referred to as Payday Loans, Payday Advances, Payday Advance Loans and Fast Cash Loans.
• 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.
• Credit: What you owe today, you have to repay it tomorrow.
• Credit Agencies: Organizations that collect consumer's credit information and supply it to potential lenders in the form of a report.
• Credit Check: This is 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 Worthiness: Credit worthiness is a debtor's ability to pay-off his debts in future.
• Debts: The amount owed by you to others. Direct Deposit: A common term used to refer to the process of transferring funds (making a deposit) into your account electronically.
• Fax (Facsimile): This is an electronic device that allows a user to issue a recipient a copy of a document as it appears via a specialized phone line.
• Fees: 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.
• 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.
• Lender: Individual or organization that provides money as a loan to the consumer against a certain charge called "Interest".
• Liability: The amount you owe to others is your liability.
• 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.
• 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.
• 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.
• Term: The agreed time within which the borrowed loan amount is to be repaid.
• 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.

So here you have gathered all the basics about payday loan cash advance terminologies. We hope you have definitely gained from what you went through here. Now you can approach wisely for a payday loan…. good luck.