Wednesday, August 02, 2006

Payday Loan Terms

Although payday loan takes account the same terminologies as any other loans, new comer will find it quite overwhelming. If this is your case, donĀ“t worry. Below you will find some common payday loan terminologies.

Annual Percentage Rate (APR)
This is the amount of the interest rate you have to pay for the loan.

Payday Loan
A short term loan, normally less than a month, that enables you to loan money and pay it with your next paycheck.

Payday Loan Online
A payday loan transaction that is done on the internet

Loan Fees / Finance Charges
Additional fees that is charged on your payday loan. Some companies combine the interest rate and loan fees into one.

No Fax Payday Loan
A payday loan in which you are not required to fax your documents such as bank record, paycheck, etc.

Amount Financed / Total Payment Due Lender
This is the amount you borrowed plus the interest and any additional cost. For example if you borrow $100 and the interest is $10 with no other fees, then the amount financed is $110.

Secured loan
This is loan that has some sort of collateral that the lender can claim ownership if the borrower fail to pay the loan.

Unsecured loan
This is a loan that has no collateral at all. The lender puts full trust to the borrower that he/she may pay the loan according to the terms.

Roll Over
This means that a loan is extended, or more precisely refinanced, for a new term.

Licensed Lender
Licensed lender is just that. The lender is licensed to lend money out. As a precaution, always take payday loan from a licensed lender.

The general information provided by is intended as an educational purpose only, and should not be interpreted as legal advice. The law varies drastically by location and legal specialty, and makes no promises about the accuracy or completeness of the information provided. You should not rely on our information when making legal decisions. We recommend that you consult with a lawyer to get professional legal advice on how best to deal with your situation.
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