Terminologies or facts that will confront you when you apply for a payday loan. Some of the most commonly used terms in today’s payday loan industry.

Accrued Interest: Interest that you will incur that is yet to be paid or charged.

Appreciation: Increase in value of an asset.

APR (Annual percentage rate): Interest rate is always reflected as a yearly rate.

Credit Agencies: – Organizations that collect a consumer’s credit information and supply it to potential lenders

Credit History: – Provides any information regarding a borrower’s previous credit activities regarding any kinds of repayment or timely payment of debts. It acts as a risk guide to any potential lender that checks your credit

Credit rating: – Your credit rating that shows your historical ability to pay off your debts or loans.  It is kind of a grading or ranking that is provided by credit agencies

Credit Report: – It is a report about your credit history. It is a list all of your past debts , address, job, social security info and payment history

Default: The act of failing to pay a financial obligation

Interest: Interest is a surcharge on the repayment of borrowed money

Interest Rate: The rate at which the interest is charged, expressed as a percentage or APR (Annual Percentage Rate)

Liability: A financial obligation, or the cash outlay that must be made at a specific time to satisfy the contractual terms of such an obligation or loan

Lender: Individual or organization that provides the loan against a specific interest charge.

Loan: Money borrowed that is usually repaid with interest.

Loan Application: Documentation to be completed by the borrower which provides the lender with all the necessary personal and financial information about the borrower

Monthly Payment: The amount consisting of principal and interest paid to the lender on a monthly basis.

Principle Amount: The original amount of the money borrowed from a lender. This does not include interest or fees

Renewal: An extension of the loan period on an item, granted to the current borrower

Repayment: Payment of a debt or obligation

Rollover: A term often used by lenders when they allow a borrower to delay making a principal payment on a loan