| |
| |
|
Loans Information |
|
|
|
Guide to Loan Terms
Listed below is a guide to loan terms. It is a useful list of definitions of loan terms that may or may not be familiar to you. Keep it nearby as you will never know when you might need it for quick reference. Accrue Process in which interest accumulates on a borrower's loan. Amortization A repayment method in which the amount you borrow is repaid gradually though regular monthly payments of principal and interest over the term of the loan. Annual Percentage Rate (APR) The APR shows the cost of a loan expressed as a yearly interest rate, including the interest and other fees associated with the loan. Application First step in the official loan process to gather and record information about the potential borrower. Borrower Person who has been approved to receive a loan and is then obligated to repay it. Capitalization Adding unpaid accrued interest to the principal balance. Capitalizing interest increases the principal amount of the loan and the total cost of the loan. Collateral Property pledged as security for a loan to ensure repayment of a loan. Credit Agencies/Credit Bureaus Organizations that collect individual consumer credit information and provide credit reports to potential lenders. Credit History History of an individual's debt repayment. For most types of loans, lenders use this information to gauge a potential borrower's ability to repay a loan. Credit Rating Grade assigned to denote the net worth and credit standing of an individual or a business. Credit Report Record that lists all past and present debts and the timeliness of their repayment and documents an individual's credit history. Debt Amount owed to another that must be repaid. Default Failure to repay a loan according to the terms of the loan. Delinquency Failure of a borrower to make a timely payment on a loan. Interest Fee charged for the use of money. Interest Rate The amount of interest charged on a loan, usually expressed as a percentage. Lender Entity that provides loan funds to the borrower. Depending on the type of loan, the lender may be a bank or other financial institution. Loan Money borrowed from a lending institution, usually repaid with interest. Loan Applicant Party applying to the lender for a loan. Note Binding legal document you sign when you get a loan. It lists the conditions under which you're borrowing and the terms under which you agree to pay back the loan (also called a promissory note or a mortgage note). Payment Periodic (usually monthly) instalments paid to a lender to be applied toward repaying your loan. Principal Loan amount borrowed from a lender, not including interest or additional fees. Repayment Process of paying back borrowed money. Term Time limit within which a loan must be repaid. Variable Interest Rate Interest rate that changes periodically in relation to an index. Payments may increase or decrease accordingly. You may freely reprint this article provided the author's biography remains intact: John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.
MORE RESOURCES: |
|
|
|
RELATED ARTICLES
Benefits of an Unsecured Loan Listed below are some of the benefits of an unsecured loan. An unsecured loan is a loan which does not require you to have any collateral to secure the loan against. Get a Low Rate on a Secured Online Loan Secured loans have become very popular over recent years, with more and more consumers realizing the benefits of this type of loan. Secured finance is available to those with an asset - usually the home - against which the loan can be secured. Parent Loans or Student Loans - What is Going to be Best for My Child? Parent Loans or Student Loans - what is going to be best for my child?At least 20% of college students need some type of loan to help pay for their college education. Such a statistic can lead to students graduating with an unmanageable debt load. Personal Loans for Bad Credit Can Discipline Repercussions of Negative Credit Bad credit is like an ongoing battle for many loan borrowers. Bad credit has many repercussions for the people when they apply for personal loans. Devising Newer Ways of Repayment How good would it have been had there been no obligation to repay the loan or mortgage? This is what most people think when required to make the monthly repayments. But try as much as they can, they are never able to change the situation. How To Reduce Your Payments Are you paying out too much every month for your credit cards, store cards and loans?If each month you have far too many payments to meet and you cannot see a solution to your problem then why not replace them all with one, lower, convenient repayment through a debt consolidation loan?Debt consolidation loans can give you a fresh start, allowing you to consolidate all of your loans into one - giving you one easy to manage payment, and in most cases, at a lower rate of interest.If your objective is to reduce interest rates and lower your monthly payments, avoid bankruptcy, consolidate your bills and have one monthly payment, or simply get out of debt the fastest way possible, then a debt consolidation loan could provide the answer. Loan Basics There is more than one type of loan. Depending upon your situation, you might find that what works in one circumstance does not work in another. Instant Car Loan - Get an Approval Online Quick Your car loan is now less than an hour away from approval with an online car loan lender. You can have a check in hand to buy a car the next day once your online application is approved. Cant Wait For Payday? Try Check Advance Check advance can come in really handy when you're waiting for the regular pay check that never seems to come. Check advance stations exist in most major cities, sometimes several check advance locales to a block. How to Find a Cheap Debt Consolidation Loan If you're shopping around for a cheap debt consolidation loan, then you're going to want to try to find the one that has the lowest interest rate that you can get. The interest that you pay will depend largely on the collateral that you can offer to secure your cheap debt consolidation loan, as well as your credit history and the amount that you want to borrow. Getting the Best Loans UK with Bad Credit Sometimes it might seem as though finding good loans UK is nearly impossible for those who have bad credit.Having bad credit can make life difficult in many ways, and almost certainly makes it more expensive? without being able to get decent loans UK, though, many of these expenses can be more than an individual can handle on their own and they often have to do without the things they want or the financial assistance that they need. What is Credit Insurance? Are you wondering what is credit insurance? Very simply, credit insurance is an insurance policy that protects a loan on the chance that you are unable to make the repayments. The next time you have occasion to apply for a loan or mortgage, you will be asked if you want to buy credit insurance, or it might already be included in your loan proposal. Should You Get A Pay Check Advance? At some point in your working life, you may find yourself in a situation that requires fast cash. A pay check advance could be the answer to your problem. What You Should Know About Home Equity Loans A home equity loan is essentially a type of second mortgage. You'll be borrowing money against the value of your home. Guide to Bad Credit Loans Here is a useful guide to Bad Credit loans. Bad credit loans mean that you are taking out a loan that may depend on your credit history. Securing Debt Consolidation Secured Loans If you're like most people, then you've got debt in your life? and if that debt is getting out of hand, you might want to consider debt consolidation secured loans.These loans are designed for people who find themselves in debt beyond their means to reasonably pay it back; the loans pay off either a portion or the total sum of their debts so that there is only a low monthly loan payment instead of the various debts that were consolidated. Refinancing Your Auto Loan Refinancing your loan is one of the best kept secrets around for saving you money, but most people never think of it. Whether refinancing your home or car the process is the same. A Look at Common Types of Loans People sometimes wonder about common types of loans, especially with all of the different types of loans available.There are many common types of loans that may fall into the same categories, as well as some common types of loans that are only different in one or two small ways. Secured Loans vs. Unsecured Loans - Choosing Between the Two Diverse Ends Often in our search for finance options, we are led into a crossroad where we have to make a choice between secured and unsecured loans. Both are equally alluring and put the borrower in a difficult spot. Payday Loans - The Legal Loan Sharking Industry Laws have been created to protect people against "Loan Shark" practices in which short-term loans are given out at excessive interest rates. There is an industry that has come of age the last couple of years that has circumvented these laws.
|
| home | site map |
| © 2006 |