Bullet Cash Advance Glossary
When you start looking into payday or cash advance loans, it's a good thing to familiarize yourself with some of the terms associated with the process. Here are some important terms you should know:
APR - Is an acronym for annual percentage rate. The APR represents the cost of borrowing quick no faxing cash advances or other loans and is traditionally displayed as a percentage on the consumer loan agreement. According to federal law, lenders must disclose the APR on the loans they give.
Balance - The amount of money owed on quick no faxing cash advances. This amount includes the principal of the loan and the finance charge.
Cash advance - An advance on a borrower's paycheck in the form of a cash loan. Used synonymously with payday loans in most cases.
Collateral - The property that secures a loan or other credit and is subject to seizure if the borrower fails to repay the loan as agreed. In the case of a quick no faxing advance or payday loan, the collateral is the borrower's paycheck.
Default - Failure to repay a loan as agreed.
Finance charge - The fee a lender charges when money is borrowed, typically based on a percentage of the loan amount compounded over time. With quick no faxing cash advances, finance charges are usually expressed as a flat percentage of the amount borrowed.
Interest - The amount of money paid to a lender in exchange for the convenience of borrowing. With quick no faxing cash advances and other loans, the interest is usually referred to as a finance charge.
No faxing cash advance loan - Loans that do not require the borrower to fax in documents, such as pay stubs, copies of bank statements, etc., to prove the information provided on a loan application is accurate.
Payday loan - Payday loans are small cash loans made against the borrower's next paycheck. This will vary by lender, but most payday loans use the borrower's next paycheck as collateral, and so the loan is due on the borrower's next payday. Check your consumer loan agreement for details.
Principal - The basic amount of a loan. For example, if you take out a loan of $500 and have to pay a finance charge of $50, you would have to repay your lender $550 total, $500 of which would be the principal on the loan. The remainder would be interest and fees.
