Accrue: This is the amount of interest that has accumulated on the loan balance.

Annual percentage rate (APR): Payday lenders are required by The Federal Truth in Lending Act to disclose the APR, which is the annual loan cost that is charged.

Apply: To receive a payday loan, borrowers must fill out an application, where they will supply contact and banking information, as well as employment or income details.

Approved: An approval by a payday loan provider means that the borrower has met all the requirements, and they have been approved to receive the loan.

Bad credit: This is the same as having a poor credit rating, or FICO score. The score is calculated and reported by credit bureau agencies. Bad credit is usually a result of the person not making payments on time, defaulting on loans, filing for bankruptcy, and other such actions. Bad credit makes it more difficult to get loans and lines of credit.

Bankruptcy: This is a legal term where a court proceeding has granted the elimination or re-organization of a borrower’s debt. There are two main types of bankruptcy, Chapter 7 (which eliminates the debt), and Chapter 11 (which reorganizes the debt for easier payback).

Borrower: This is the person who is borrowing the payday loan or getting the cash advance.

Cash advance loan: This is the same thing as a payday loan. It is typically a short-term loan made to someone that needs funds until their next paycheck. The loans are usually up to $1,000.

Collateral: This is a person’s assets, such as their home or vehicle, that they can offer to a lender to secure a loan. The collateral is typically around the same value as the loan, and if the borrow fails to pay back the loan, the lender may sell the collateral in order to satisfy the loan.

Community Financial Services Association of America (CFSA): This is a national organization that oversees the payday loan industry. They monitor the industry in order to make sure businesses are operated responsibly. The CFSA helps borrowers feel comfortable that they are getting a short-term loan that is legitimate.

Credit check: Most places that offer loans do a credit check on the borrower. The credit check is a detailed report about the person’s credit history, and it is obtained by one or more of the top credit bureaus, including Equifax, Experian, and TransUnion. The information in the credit check will give insight as to how credit worthy the person may be.

Credit history: The credit history of a borrower is compiled by the reporting agencies. It shows the data related to a person’s loan and repayment history, including how much they have borrowed, if they made payments on time, if they defaulted, etc.

Credit report: The credit report is provided by the credit bureaus and includes a person’s history, such as their credit history, inquiries, public records, bankruptcy filings, and outstanding debts. All of this information is used to determine a borrower’s credit score.

Credit reporting agency (CRA): The three main reporting agencies for credit information are TransUnion, Experian, and Equifax. They compile credit and repayment information on borrowers and provide that information, along with a credit score, to potential lenders.

Credit score: The credit score is a number that is determined when credit reporting agencies calculate a person’s credit history. The number ranges from 300-900, with the higher being the best rating. Depending on where a borrower falls within the range, they are usually classified as having a poor, fair, good, or excellent credit score.

Creditworthiness: This is the likelihood that a borrower will repay the loan or line of credit that they have been granted. Those with good credit are seen as being more credit worthy.

Debt: This is the amount of money that someone owes. It may include what they owe on their home, car, credit cards, school loans, and other forms of credit they have been extended.

Debt Management Company: These are companies that work on behalf of borrowers to help them manage their debt by negotiating with creditors. They may help them get lower monthly payments or interest rates, as well as have late fees removed and debt recovery calls halted. They often offer a variety of financial counseling services options.

Default: Borrowers are considered to be in default on their loans when they have failed to make payments on time and have stopped making any payments.

Deferred deposit lending: This is a type of short term loan, usually lasting up to two weeks, where the borrower provides the lender with a postdated check in exchange for a cash advance. Once the date on the check has arrived, the lender deposits the check.

Direct deposit: With a direct deposit, funds are electronically deposited.

Fee: This is the amount that payday lenders charge to borrowers for the funds they have borrowed.

Finance charge: This reflects the total amount of the credit that has been granted, and includes such things as interest, fees, and any applicable service charges.

Interest: Those who borrow money will have an interest rate percentage that they have to pay for borrowing the funds. The interest is the rate that was paid for borrowing the money.

Internet payday loans: Loans that borrowers can obtain by filling out the information online. The lender typically uses direct deposit to get the funds to the borrower.

Lender: This is the payday loan business that is providing the cash advance to the borrower.

Liability: This is the amount of money that a borrower owes to others, including individuals and companies.

Loan: The cash advance that is being provided to the borrower.

Maturity date: This is the final date that the finance charges and principal are all due on a loan.

No credit check personal loan: This is a type of loan that borrowers can obtain without having to have a credit check in order to be approved.

No fax payday loan (faxless payday loan): This type of loan is a quick way to obtain funds. It does not require the faxing of bank account or employer information. Rather, borrowers can simply obtain the short-term loan by calling the lender or applying online.

Online payday loan: Borrowers will find that there are online payday loans, where they simply need to apply for the loan online, which can be done anytime day or night. They usually do not require credit checks, and it has been designed to be easy enough to be done from home. Requirements for online payday loans usually include being a U.S. citizen, having a job or regular source of income, having a valid banking account, and being at least 18 years of age. With this type of loan, the funds are transferred via direct deposit.

Over-the-limit fees: This is a fee that borrowers pay each month that their balance is over their limit. It ranges from $25 to $40 per month.

Payday loan quote: This is a service where you can get free quotes in order to be able to compare lenders and rates for payday loans.

Payday loans: These consumer loans usually range up to $1,000 and are short-term, with the payback period of up to two weeks. They can be obtained by walking into payday loan businesses, online, or through phone or fax. They usually do not require a credit check. The funds are often deposited directly into the borrower’s bank account. On an agreed upon date, the loan amount, in addition to the finance charge from the loan, are withdrawn from the bank account by the lender. There are many terms used interchangeably for payday loans, including cash advance, online payday loans, deferred deposit, faxless loans, quick loans, and fast cash.

Payday loan calculator: This is a calculator that is available online. It allows borrowers to calculate their loan information, including interest information, as well as their final repayment amount of the payday loan.

Predatory lending: These are practices where the borrower is being deliberately deceived in regard to how much they are being charged, what interest rate they are paying, or the terms of the loan. It is a persuasive attempt by the lender to charge them absorbent fees for their service.

Prepaid debit card: This is a route that many people take to improve or establish credit. They deposit funds into an account, which is linked to a debit card. Then they can use the debit card to control spending. Consumers are guaranteed approval for prepaid debit cards and there are no interest charges applied.

Prepayment penalty: Some lenders charge a prepayment penalty if the borrower pays off their loan prior to the maturity date.

Principal: This is the amount of money that has been borrowed. It does not include fees, interest, or any other expenses that were added.

Rollover: When lenders need an extension to pay back the money they have borrowed, they are granted a rollover, which is also referred to as an extension. The borrower assumes a fee for this extension, and most states now have limits on the number of times someone can get a payday loan rollover.

Term: This is the time frame for which the loan has been provided. With a payday loan, it is typically one to two weeks.

Truth in Lending Act (TILA): This act set forth by the federal government requires that there be full disclosure about loans, so that borrowers know all terms, fees, costs, etc.

Unsecured loans: These are loans for which the borrower does not have to put up collateral, such as their vehicle or home. They range in amount from $200 to $250,000 and do not require a lot of paperwork. Borrowers can usually get unsecured loans fairly quickly, provided they can show verification of employment or income.

Wire Transfer: This is the same thing as a direct deposit, where the funds are put into the bank account electronically.