Payday Loan Glossary

Amortize

Amortizing is to repay the loan, in small but regular installments, that occur monthly or quarterly, over the term of repayment.

APR (Annual Percentage Rate)

The APR or annual interest rate combines interest rate and other charges involved in a loan.

Bad credit

Bad credit, which is also known as poor credit and adverse credit results when the borrower has bankruptcy or repossession in his credit file.

Balance

The balance is the amount remaining to be paid on a loan.

Bankruptcy

Bankruptcy results when the borrower is completely unable to repay debts. The courts intervene to erase the debts by liquidating all the assets of debtor. Since bankruptcy is available on the website of the debtor for about 6 years, it becomes especially difficult for the borrower to get credit.

Cash advance loan

Through a cash advance loan, borrowers can get an amount up to $1500 to fill the gap between paydays.

Credit History

Credit history is a record of the debts that have been taken and the status of their repayment.
DefaultA default takes place when the debtor is not able to repay debts according to the specified agreement.

Monthly payment

Monthly payment is computed by dividing the sum of the principal and interest on the loan by the total number of payments.

Principal

The actual amount borrowed against the loan is called the principal.

Rollover

Rollover of a payday loan means extending or renewing loan by agreeing with the lender to pay loan at a renewed term of repayment. This is done by paying the interest on loan and agreeing to pay the balance of loan plus new interest later. Payday loans can be rollover for a maximum of six months.