Financial Glossary

Common Terms Used in the Money Lending World

Annual Percentage Rate (APR):

Annual Percentage Rate (APR) is the total interest rate charged on your loan amount for a whole year (annualized), rather than just a monthly fee/rate.

Bad credit:

A term that is often used to describe borrowers who have a track record of late or missed payments. The borrower's failure to keep up with credit agreements/loan payments signals to lenders that the borrower may have a hard time paying off future loans, thus often resulting in inability or increased difficulty of the borrower to get approval for new or further extensions of credit.

Billing Cycle:

Billing cycle is the interval between the days or dates of regular statements. Depending on your pay frequency, your billing cycle may range between days.

Business Day:

A business day is considered every official working day of the week. Public holidays and weekends are not considered business days.


A Credit Access Business (CAB) will attempt to arrange a loan from an independent third-party lender on behalf of the borrower and, if approved, is responsible for the ongoing servicing of any loan that is originated. All installment Loans arranged by MoneyKey in Texas are funded by an unaffiliated third-party lender.

Cash advance:

An advance available via an existing credit card, line of credit or other short-term personal loan. Cash advances are typically used by borrowers to cover urgent cash needs, typically at a high interest rate and with fees.

Cash Advance Fee:

A fee that will accrue each time you withdraw funds from your loan.

Charged Off:

A declaration by a lender that an amount of a loan is unlikely to be collected. This occurs when a borrower becomes severely delinquent on an outstanding debt.

Credit check:

An assessment of your credit history done by a lender before your loan is approved. Direct lenders often evaluate credit histories before deciding if they are going to approve a loan application.


Credit is a contractual agreement where a borrower receives funds from a lender and then agrees to repay this amount back in the future allotted time, generally with interest.

Credit History:

A record of a borrower's responsible repayment of debts.

Credit Limit:

The maximum amount of credit that you can withdraw from your Personal Line of Credit.

Credit Score:

A number representing a financial snapshot of an individual. Lenders use credit scores to evaluate the potential risk posed by lending money to consumers.

Credit Report:

A record of a borrower's past credit history from a number of sources, including banks, credit card companies, collection agencies, and governments. Credit reports contain information about your past credit history, including but not limited to your bill payment history, amounts of past loans, current debt owed to other lenders, and other financial information. They help lenders decide whether or not to extend credit to you, and determine what interest rate they will charge you.


A Credit Services Organization (CSO) is a licensed company that attempts to arrange a loan between you and an unaffiliated third-party lender. If successful, a CSO will guarantee repayment of the loan to the lender. All Installment Loans arranged by MoneyKey in Ohio are funded by an unaffiliated third-party lender.


Failure to meet the legal obligations (or conditions) of a loan.


When a borrower is late in paying back their debt and/or is unable to make payments at all, they are considered to be delinquent.

Direct Deposit:

When funds are electronically deposited into an individual's bank account.

Direct Lender:

A financial institution that provides a loan directly to a person or organization without any intermediaries or middle men. The customer receives their loan "directly" from the lender, and the loan is to be paid back directly to that lender. Direct lenders are accessible online or in-store.

Daily Balance:

The daily opening balance of your account, plus any new advances deposited into your account on such day, and less any principal payments to your account on such day.

Daily Periodic Rate:

A periodic rate is the APR expressed over a (shorter) period of time. You can calculate the periodic rate by dividing the APR by the number of billing periods in the year. For example, a monthly periodic rate is calculated based on the APR divided by the number of months in a year, or 12.

Emergency Expense:

An unexpected expense that needs to be covered as soon as possible. For example, an urgent car or home repair, or an immediate medical expense such as a cast or an operation.


When more time is requested by a borrower to pay off their payday or installment loan.

FICO Scale:

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 used to determine an individual's creditworthiness, by assigning them a credit score. The FICO scale ranges from a low of 300 to a high of 850. The higher your credit score is on the FICO scale, the better your chances of getting a loan.

Finance Charge:

A finance charge is a fee charged for the use of credit or the extension of existing credit. It may be a flat fee or a percentage of the amount borrowed.

Financial Health:

A term used to describe the state of one's personal financial situation. There are many dimensions to financial health, including the amount of savings you have, outstanding debt, and how much of your income you are spending on fixed or non-discretionary expenses.

Flex-Pay Installment Loan:

A Flex-Pay Installment Loan is a loan product repayable through a number of scheduled repayments set up to coincide with your pay dates. The first few payments consist of fees only; subsequent payments will include principal payment and fees.

Good Standing:

A term to describe a borrower who has successfully adhered to the terms and conditions to repay their loan.

Installment Loan:

Sometimes referred to as a Substantially Equal Payment Installment Loan, an Installment Loan is paid back through a series of equal installment payments spread out over a longer period of time, and includes a principal reduction with each payment.

Installment Payments:

Scheduled payments on an Installment Loan. The dates and amounts of Installment Payments are determined based on the type and duration of the loan, as well as the borrower's income schedule.


Interest is the charge applied on the principal loan amount expressed as annual percentage rate.

Interest Rate:

For a loan product, an interest rate is the amount charged by the lender to a borrower for the use of the funds borrowed, typically expressed in annualized terms.


The entity who lends a borrower money based on terms that both parties agree to a loan agreement.

Line of Credit:

An open-ended loan in which the account remains active even after you have paid down to a zero balance. A line of credit provides the convenience of being able to access credit available to you in an account without needing to submit a new loan application each time.


A loan is a sum of money that is borrowed from a Lender under the condition that it will be paid back in full, typically with interest and fees, at agreed upon rates in accordance with a loan agreement.

Loan Agreement:

A document which details the exact terms of the product for which you have applied, as well as all fees and interest chargeable to you under the agreement.

Loan Matching Services:

Organizations that try to match borrowers with a third-party lender based on the information provided in an online loan application. Borrowers should be aware that they are receiving the loan from these third-party lenders, not the Loan Matching Service that accepted the loan application.

Minimum Payment:

The minimum amount due in each billing cycle. A minimum payment will consist of fees, interest accrued during each billing cycle, and a principal repayment component.

Online Lender:

Online lenders often offer small loans such as payday loans, installment loans and/or lines of credit to quickly and conveniently 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, as the money is deposited directly into the borrower's account.

Online Payday Loans:

A popular online method of applying for a payday loan without having to visit a physical store location and/or fax an application to the lender.


An origination is the process by which a borrower applies for a new loan, and a lender processes that application. Origination generally includes all the steps from taking a loan application up to disbursal of funds.

Outstanding Balance:

The unpaid balance remaining on a loan or other borrowed amount, including applicable interest.

Partial Payment:

A payment made partially towards the principal and to the interest of your loan or line of credit.

Payday Loan:

Payday loans are short-term loans that are intended to be repaid with the borrower's next paycheck. This type of loan is typically for a relatively small amount of money, usually $1000 or less, and is often used by consumers who need immediate access to money. Payday loans are often offered at a higher interest rate than longer-term loans.

Payday Lender:

A financial institution/lender that offers payday loans.

Personal Line of Credit:

A personal line of credit gives a borrower access to the funds they need at any time, up to the borrower's preapproved credit limit. An individual does not need to reapply to take out additional funds so long as they have available credit (i.e. have not reached their approved credit limit). Unlike some other financial products, as long as the borrower makes any required minimum payments, the amounts borrowed can be paid back as and when the borrower desires or is able.


The dollar value of a loan before fees and interest. The principal is the amount borrowed on which interest is calculated.

Principal Payment:

A payment toward the amount of principal owed. Generally, when a loan payment consists of only a principal and interest payment, the amount owed for interest is processed first, and the remaining amount of the payment is applied to the principal balance.

Periodic Statement:

A statement issued by a lender to the borrower with a record of all previous transactions, fees, and finance charges.


When the terms of the loan are revised in a way that changes the payments associated with the loan. In a refinanced loan, the old loan is paid off with the new loan, and the old terms are replaced with new terms.


You may be asked to share your employer's contact number as a reference who can be contacted if Moneykey is unable to reach you after multiple attempts. As a policy, we will never disclose the nature of your business with MoneyKey to your reference(s) or employer(s).


Renewal of a loan involves extending the term of the existing loan, sometimes with a fee charged for the extension of the loan terms – this is different from refinancing, where loan terms may change because a new loan is generated and the old one is paid off simultaneously. If you are dealing with a short-term loan, such as a payday loan, the renewed payday loan is typically due the next pay period.

Responsible Lending:

A customer-first principal, aimed at helping borrowers manage their debt load and build or improve their credit rating.

Revolving Credit:

A credit that is automatically renewed as debts are paid off. MoneyKey Line of Credit is a type of revolving loan.


Substantially Equal Payment is a type of Installment Loan that is repayable in substantially equal installments.

Statement Date:

The date on which a statement is generated, and the month's finance charges (interest) are added to the balance.

Truth in Lending Act:

A federal law created to enforce the educated use of consumer credit. This Act requires disclosures about a creditor's terms and costs to clarify the manner in which costs associated with borrowing are calculated and disclosed.

Unsecured Loan:

A loan issued and supported only by the borrower's creditworthiness, rather than by any type of collateral. Because an unsecured loan is not guaranteed by any type of property, these loans are bigger risks for lenders and, as such, typically have higher interest rates than secured loans.

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