A
- Amortization
- Paying a loan off through scheduled payments that cover both interest and principal. Early payments contain more interest; later payments contain more principal.
- Amount financed
- The loan amount minus prepaid finance charges such as an origination fee. It's what you actually receive.
- Annual percentage rate (APR)
- The yearly cost of credit including interest and most fees, expressed as a percentage. Loanify APRs range from 5.99% to 35.99%.
- Autopay
- Automatic payments drawn from your bank account on the due date.
B
- Buy now, pay later (BNPL)
- A point-of-sale plan that splits a purchase into several payments, often four payments over about six weeks.
C
- Cash advance
- Cash withdrawn against a credit card limit, usually with an upfront fee, a higher APR and interest that starts immediately.
- Charge-off
- When a lender writes off a severely delinquent debt as a loss. The debt is still owed and seriously harms credit.
- Collateral
- An asset pledged to secure a loan. Loanify loans are unsecured and require no collateral.
- Credit mix
- The variety of account types on your credit report, such as cards and installment loans. About 10% of a FICO® Score.
- Credit report
- A record of your credit accounts and payment history kept by Equifax, Experian and TransUnion.
- Credit score
- A number, commonly 300–850, that summarizes credit risk based on your credit report.
- Credit utilization
- The share of your available revolving credit you're using. Lower utilization generally helps your score.
D
- Debt consolidation
- Combining several debts into one new loan, ideally with a lower APR or a simpler payment.
- Debt-to-income ratio (DTI)
- Monthly debt payments divided by gross monthly income.
- Default
- Failure to repay a loan as agreed, usually after several missed payments.
F
- Finance charge
- The total dollar cost of credit, including interest and certain fees.
- Fixed rate
- An interest rate that doesn't change during the loan. Loanify loans have fixed rates.
H
- Hard inquiry
- A credit check made when you formally apply for credit. It can slightly lower your score temporarily.
I
- Installment loan
- A loan repaid in a set number of equal, scheduled payments.
L
- Late fee
- A charge for a payment received after the due date, where allowed by state law.
- Loan term
- The length of time to repay a loan. Loanify terms range from 3 to 36 months.
O
- Origination fee
- A one-time fee for processing a loan, usually deducted from the loan amount and included in APR.
P
- Payday loan
- A short-term, single-payment loan typically due on your next payday, often with very high APRs.
- Prepayment penalty
- A fee for paying off a loan early. Loanify loans have none.
- Prequalification
- An estimate of the rates and terms you may qualify for, typically based on a soft credit inquiry.
- Principal
- The amount borrowed, not including interest.
S
- Soft inquiry
- A credit check that doesn't affect your score, such as checking your Loanify rate.
T
- Total of payments
- The total you'll pay over the life of a loan if you make every scheduled payment.
- Truth in Lending Act (TILA)
- Federal law requiring lenders to disclose the APR, finance charge and other key terms before you sign.
U
- Underwriting
- The process a lender uses to evaluate an application and decide whether to approve it and on what terms.
- Unsecured loan
- A loan not backed by collateral.