Loan Glossary
Understand the most common terms used in short-term personal lending.
This guide is here to help you feel confident and informed as you explore your loan options.
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A–C
Annual Percentage Rate (APR)
The total cost of borrowing money, shown as a yearly percentage. It includes the interest rate and any fees.
Bad Debt
Money owed that is unlikely to be repaid. This can impact your credit and may be sent to collections.
Collateral
An item of value used to secure a loan. We do not require collateral for our loans.
Collections
When a debt is not repaid on time, it may be turned over to a collections agency. This can negatively affect your credit score.
Credit Check
A review of your credit report used to determine loan eligibility and set terms.
Credit Score
A number that represents your creditworthiness. Higher scores typically mean better loan options.
Credit Utilization
This is how much you owe compared to how much available credit has been extended to you.
D–F
Default
Failure to repay your loan as agreed. This can lead to collections and hurt your credit.
Fixed Rate Loan
A loan with an interest rate that stays the same throughout the repayment period.
G–L
Grace Period
A short time after the due date when you can still make a payment without a late fee, if offered.
Installment Loan
A loan repaid through regular, scheduled payments. Our loans follow this structure.
Interest Rate
The cost of borrowing money, shown as a percentage. It’s part of the APR.
Late Fee
An additional charge if your payment is late or missed.
Loan Agreement
A document outlining the terms and responsibilities of your loan.
Loan Terms
The conditions of your loan, including the amount, interest rate, repayment period, and fees.
M–P
Non-Revolving Credit
A one-time loan that is paid off in fixed payments. Once it’s paid off, it does not renew.
Pawn
A loan where you leave an item of value as collateral. We do not offer pawn loans.
Payday Loan
A short-term loan typically due on your next payday, often with high fees. We offer installment loans instead, with more flexible terms.
Payment Schedule
A list of payment due dates and amounts you owe over the loan term.
Personal Loan
A loan for personal use that is repaid over time. No collateral is required.
Prepayment
Paying off your loan early. Many of our loans have no prepayment penalty—ask us for details.
Principal
The original amount of money borrowed, before interest or fees.
Q–Z
Short-Term Loan
A loan designed to be repaid over a short period—usually a few months to one year.
Soft Credit Check
A credit check that does not affect your credit score. Often used during pre-qualification.
Title Loan
A loan where you use your car title as collateral. We do not offer title loans.