Glossary

Automated Clearing House (ACH):

An acronym for Automated Clearing House. ACH credits are amounts that are electronically
transferred into your bank account. ACH payments are electronic payments that are automatically debited from your bank account. You’ll need to provide authorization in order for any institution to take ACH payments from your bank account.

Bad Credit:

A term that is often used to describe a track record of late or missed payments. A borrower’s failure to keep up with their financial obligations, including loan payments, signals to a lender that the borrower may have a hard time paying off future loans. Having bad credit may make it more difficult for the borrower to be approved for credit in the future.

Billing Cycle:

The interval between the dates of regular Periodic Statements.

Business Day:

Refers to the days of the week a business is in operation (usually this is between Monday and Friday). Public holidays and weekends (for many businesses) are not considered Business Days.

Collateral:

Security from the borrower used to help guarantee repayment of a Loan to a lender. If a borrower stops making payments towards a Loan, the lender can seize and sell the asset to recover the Outstanding Balance of the Loan.

Credit Bureau:

An agency that collects and compiles information regarding consumers’ Credit History.
Typically, lenders will review the consumer’s Credit Report from the Credit Bureau to assess the consumer’s ability to repay debts.

Credit History:

A record of a consumer’s payment behavior as demonstrated through historic data. Typically, lenders obtain an understanding of a consumer’s Credit History by reviewing the consumer’s Credit Report to assess the consumer’s likelihood of repaying their debt(s).

Credit Report:

A record of a consumer’s Credit History, including but not limited to a consumer’s bill payment history, amounts of past loans, current debt owed to lenders, and other financial information. A Credit Report may include information from a few sources such as banks, credit card companies, collection agencies, and governments. Some lenders may use Credit Reports to decide whether to extend credit to a consumer and may use the information to determine what rates they will charge.

Credit Score:

A number that helps represent a consumer’s Credit History. Lenders use Credit Scores to evaluate a consumer’s creditworthiness to assess the potential risk of lending money to the consumer.

Default:

Failure of a borrower to meet the legal obligations (or conditions) of a Loan, including the failure to make timely payments.

Delinquency:

The status of a borrower’s account when they are late paying back their debt.

Direct Deposit:

The movement of funds from one bank account directly to another bank account. Many employers use Direct Deposit as a method of providing income to employees.

Direct Lender:

An entity that provides a Loan directly to a borrower without any intermediaries or “middle men”. The borrower receives their Loan directly from the lender, and the Loan is to be paid back to that lender. Direct lenders are accessible online or in-store.
When you work with online direct lenders, your communication and interactions will generally be with one financial institution. The process of applying for your loan, getting approved, receiving your funds and paying back your loan will all be with one lender. With online direct lenders, much of this process, including filling out your loan application, will be done online. This may make things easier for you as you can apply from anywhere you have internet access.

Daily Periodic Rate:

The FICO Scale was created by the Fair Isaac Corporation, the first company to convert a person’s Credit History into a number. The FICO Scale is a popular method of determining an individual’s creditworthiness by assigning them a Credit Score.

Fair Isaac Corporation (FICO) Scale:

In the context of short-term lending, the Daily Periodic Rate is the amount of Interest and/or fees that is charged on a Loan on any given day.

Finance Charge:

The cost of credit expressed as a dollar amount.

Financial Health:

A term used to describe the state of an individual’s personal financial situation. There are many factors that may be indicative of an individual’s Financial Health, including the amount of savings, whether there is outstanding debt, and the proportion of income that is being spent on fixed or non-discretionary expenses.

Good Standing:

For loan products offered through Quick Money Solutions, Good Standing or Active refers to the status of a borrower’s account when they have successfully adhered to the terms and conditions of their Loan, including but not limited to repayment. Accounts are considered to be in Good Standing so long as any past delinquencies have been corrected (i.e. if a borrower is not currently behind on any payments).

Installment Loan:

A scheduled payment on an Installment Loan. The dates and amounts of Installment Payments may be determined based on a variety of factors such as the duration of a Loan, and the
borrower’s pay frequency.

Installment Payment:

An Installment Loan is a Loan that is repaid through a series of scheduled, periodic Installment Payments spread out over time.

Interest:

An amount charged by a lender for the use of the funds borrowed.

Loan:

A sum of money that is borrowed from a lender under the condition that it will be repaid, typically with interest and/or fees, following agreed upon terms set out in a Loan Agreement.

Loan Term:

The period between the Effective Date of a Loan and the last scheduled payment date.

Online Lender:

A lender that provides its services through the internet. Online Lenders often offer small-dollar loans such as Payday Loans, Installment Loans and/or Lines of Credit to help customers alleviate the stress of an emergency expense or short-term financial challenge. Typically, the process involves completing an online loan application that, if approved, allows the applicant to gain access to the approved funds quickly.

Online Payday Loans:

Payday Loans that are available online are referred to as Online Payday Loans. Making Payday Loans available through the internet allows the borrower to obtain a Loan without having to visit a physical storefront location.

Outstanding Balance:

The unpaid balance on a debt, including any accrued Interest/fees/charges.

Outstanding Principal Balance:

The amount of Principal a borrower owes on their debt, excluding any Interest/fees/charges.

Payday Loan:

Payday Loans are short-term loans that are intended to be repaid in full on the borrower’s next pay date. This type of Loan is typically for a relatively small amount of money, usually $1,000 or less, and is often used by consumers who need immediate access to money. Payday Loans often come with a higher Interest Rate/fees than longer-term Loans.

Payday Lender:

A lender that offers Payday Loans.

Payment Schedule:

A schedule that sets out the amount and due dates of required payments under a Loan Agreement.

Personal Loan:

A Loan intended for a consumer’s personal use. Though most Personal Loans are unsecured, if a borrower requests a large amount of funds, a lender may require the borrower to provide Collateral to secure the Loan.

Power of Attorney:

A legal document that gives another person the legal authority to act on a person’s behalf (often in a limited capacity).

Principal:

The amount borrowed and the amount on which Interest/fees/charges is typically calculated.

Principal Payment:

A payment toward the amount of Principal owed.

Responsible Lending:

A consumer-first principle, aimed at helping borrowers make informed financial decisions. This is typically achieved by helping the consumer understand the financial risks of borrowing money and encouraging consumers to use loan products responsibly.

Secured Loan:

A Loan that requires a borrower to provide Collateral to a lender as a condition of the Loan. If the borrower stops making payments, the lender can attempt to recover the amount owed by the borrower by making a claim against the Collateral.

Secure Socket Layer (SSL):

A type of encryption that helps to ensure that all data transferred between web servers and browsers remain private and secure. SSL encryption is a standard security technology used by millions of websites to protect customer transactions online.

Truth in Lending Act (TILA):

A federal law created to promote the informed use of credit by consumers. Amongst other things, TILA requires creditors to disclose terms and costs of credit to consumers in a clear, consistent manner to help consumers evaluate the costs associated with credit products.

Unsecured Loan:

A Loan that is not secured by Collateral. This means that the Loan is approved on the basis of the borrower’s ability to repay. An Unsecured Loan is not guaranteed by any type of property, so these loans generally pose a larger credit risk to the lender and therefore typically have higher rates than Secured Loans.