Quik Payday Loan Definitions
Please Note:
These are a generalized meaning of terms used in North America and the UK. Make sure you fully understand any agreement before signing it.
If you are unsure of the language used, do not feel intimidated into signing any contract before gaining a full understanding of what you are agreeing to.
Applying by Phone
Some payday loan companies offer to take your application over the phone as well as online.
APR (Annual Percentage Rate)
A calculation based on the interest fees that are applied to the loan, which can be very high. However, many payday loan stores offer a set fee for early repayment.
Cancellation of Loan Option
This provides an opt–out solution after the funds have been deposited into your account. Some direct deposit payday loan companies will release the borrower from their loan contract if they return the funds within 24 hours. Be sure to check with the loan company regarding its cancellation policy.
Cost of Loan
These are the fees associated with a loan. Fees and interest rates are equated in an Annual Percentage Rate (APR).
Customer Service
This refers to the ways that a customer can get help or support from the lpayday loan company. Usually this is in the form of email or phone support, FAQ pages or live chat.
Cash Advance
Payday loans are often referred to as cash advances.
Cost of Credit per $100 Borrowed
The fee per $100 borrowed; for example, for a two–week loan of $500 with a fee of $20 per $100, the cost of loaning you the money is $20 X 5 – or $100 – plus, the original balance, which would bring the amount to be repaid to $600.
Credit Approval Required
All loans need to be approved. Many services do not do an extensive credit check but they do review relevant databases to access your potential loan risk.
Citizen or Permanent Resident
Applicants are required to be legal citizens or permanent residents.
Current Home & Work Phone Number
Valid home and work phone numbers are required; some payday loan copanies also require references.
Currently Employed 90+ Days
Many companies require a minimum of 90 days of verified steady income.
Direct Deposit – Checking Account
When your application is approved, the money will be deposited directly into your checking account.
Driver’s License or ID card
Meaning a valid driver’s license or ID card is required.
18+ Years of Age
Most laws require applicants applying for a loan to be at least 18 years of age.
Your Email Address
Many companies offer customer or technical support along with special offers through email contact
FAQ
Frequently Asked Questions (FAQ) pages answer the most commonly asked questions.
Faxed Documents Required
Some payday loan companies may require additional information to be faxed to them before approval.
Fee
A charge that payday lenders impose on the funds borrowed.
Finance charge
This numerical figure provides the total cost of credit, including processing fees, service charges, and interest fees
Full-time Employment – Not a Temp Service
Some companies require 90 days of employment that is not through a temporary service.
Help/Support Live Help
Some companies provide instant assistance through chat or Instant Messaging.
Loan Approval Time Frame
The amount of time it takes to receive an approval response after submitting an application; this period can range from immediately to up to 24 hrs.
Loan Extension or Renewals
For an agreed upon fee, the contract can be extended. Check the FAQ pages for Loan Extension or Renewal policies.
Loan Repayment Due Date
This is the date the loan payment is due in full.
Loan Qualification with Outstanding Payday Loans
Some services will allow borrowers to take out a loan even if they have an outstanding loan with another service. Check the service policy regarding this.
Loan Disqualification due to Bankruptcy
Some companies state they will not disqualify your application due to a bankruptcy unless it has not yet been discharged. Even if “Charge Offs” exist, they may still approve your loan.
Loan Service’s Home
This is the Home location in the contact information on their internet page.
Online Since
This is when the service went online according to the Internet ranking system.
Maximum Loan Amount
This is the maximum amount of money the company will lend you for a single loan; however, most services will not loan the maximum amount to first time applicants. Generally, most services will loan a smaller amount and increase the amount after the customer has established a good repayment record.
Maximum # of Loan Extension or Renewals
Payday loans are supposed to be short–term loans only, and are designed to be paid back quickly. Many companies allow a certain number of extensions, usually five or less.
Monthly Take Home Pay after Taxes
This is the minimum amount of income the lender requires after taxes.
Nation Wide Service
Many of these companies do not offer nation wide service because of the various laws that apply within each state.
No fax payday loan
Also known as a faxless payday, this short-term cash advance which tides borrowers over to their next payday, may be obtained instantaneously. Individuals may receive a no fax payday loan by telephone or online, without having to fax their bank account and employment information.
No teletrack payday loan
This type of short-term loan ranging from $100 to $1000 does not rely on teletrack, a system that collects adverse credit information about consumers, such as outstanding debts and bankruptcy filings. No teletrack payday lenders do not verify a prospective borrower’s credit history. Approval for these loans is quick, and the online application is short and simple.
Number of Days Loan & Interest is Based On
Many payday loan companies publish a disclosure page that shows what the fee and interest is if a loan is paid off in 5 or 18 days. Because these loans are due based on individual agreements, it is impossible to compare rates unless compared at a set number of days.
Overnight Deposit to your Account
Most companies will direct – deposit the money into your checking account within 24 hrs.
Online payday loan
A type of loan which does not require a credit check and is available on the internet 24/7, makes it possible for consumers to easily, quickly and safely apply from the comfort of their homes. Applicants must simply meet the following requirements: 1) be currently employed, 2) have an active savings or checking account, 3) earn a minimum income of $1,000, 4) be 18 years of age, and 5) have direct deposit. The lender directly deposits the funds into the borrower’s bank account and electronically withdraws the finance charge on the latter’s next payday.
Payday loan calculator
An online tool which allows consumers to calculate the total interest, annual percentage rate (APR), and total repayment amount that the payday loan will cost them. Prospective borrowers must simply enter the finance rate, length of the loan (i.e. 7 days, 14 days), and the loan amount.
Pay Dates
These are the dates of upcoming paydays.
Prepaid debit card
This form of credit allows consumers to control their spending by offering them a line of credit that corresponds to the funds they deposit or load unto their account. Prepaid debit cards are particularly appealing to individuals who may otherwise not qualify for traditional credit cards and help them repair their credit. Approval is guaranteed, and there are no interest charges.
Prepayment penalty
This represents the fee that lenders charge borrowers who pay a portion or all of their loan before the maturity date.
Principal
The initial loan amount borrowed, excluding interest, costs, and fees.
Privacy Policy & Site Encryption
Many of the sites have a privacy policy regarding what they do with personal and banking information. We have identified those sites that use a SSL (Secure Socket Layer) protocol. This SSL protocol is visible in the URL address of the service, typically on the pages where personal and banking information is submitted. HTTPS is used to access secure Web servers when authentication and encrypted communication is desired. Using HTTPS instead of HTTP directs the message to a secure port number rather than the default Web port number of 80. The session is then managed by a security protocol. HTTPS encrypts the session data using the SSL protocol, which ensures protection from eavesdroppers or man–in–the–middle attacks. Additionally, a small padlock icon should appear in the lower–right corner when the page is secure.
If you do not see “HTTPS” in the URL address or the padlock icon on the page where social security number and banking information is submitted, then beware. Just because a site posts that they are secure does not mean they are secure.
Phone Support
The better companies provide helpful and responsive phone support during reasonable business hours.
Predatory lending
This practice involves the failure to disclose loan terms and cost and/or the deceptive persuasion of prospective borrowers to consent to abusive and inequitable loan terms, such as unreasonably high fees.
Rollover
Also known as extensions, rollovers allow borrowers to renew their cash advance and extend the deadline for repayment to the next payday by paying an additional fee. While some states permit unlimited extensions, many have passed legislation limiting the number of rollovers that lenders may grant
Repayment Method of Loan – Electronic Transfer
On the due date, the total amount of the loan is electronically transferred out of a checking account.
Secure Site
This means that the site protects your personal information by using Secure Socket Layer (SSL) protocol or another method to encrypt transferred data. (also see Site encryption)
Social Security Number
Your SSN is required in the application.
Time Period before Applying for Another Payday Loan
Once a loan is repaid, there may be a required time period before the borrower can apply for another loan.
Truth in Lending Act (TILA)
This federal legislation aims at furthering transparency in consumer credit transactions by requiring clear and conspicuous disclosures to borrowers about the cost and terms of loans. Some of the important disclosures that TILA requires lenders to make are those relating to 1) finance fees, 2) annual percentage rate, 3) late payment or pre-payment penalties, 4) payment schedule, 5) their identity, 6) sum of all the payments, and 7) amount financed.
Various Payment Options
Typically, the service will offer several repayment options in the event that the balance cannot be paid by the due date. However, all policies are different and need to be evaluated on an individual basis.
Valid Checking Account
A valid checking account is one that is in good standing.
Valid email Address
An email address is required for submission.
Stephanie Moore
