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Financial Glossary

Annual Percentage Rate (APR):

The cost of credit expressed as an annual rate.

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.

Available Credit:

In the context of a Line of Credit available through MoneyKey, Available Credit is the credit available for withdrawal on a customer’s 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.

Credit Access Business (CAB):

A licensed CAB is not a lender. A CAB helps a customer obtain a loan from an unaffiliated third-party lender and earns money for providing these services. In Texas, MoneyKey is licensed as both a CAB and a Credit Services Organization (CSO).

Cash Advance:

A Cash Advance may refer to a variety of short-term Personal Loans from a lender. These Loans typically have a simplified application, approval and funding process but may also have higher Interest Rates and/or fees. Examples of a Cash Advances include Payday Loans, Installment Loans and Line of Credit products. Cash Advances are typically used by borrowers to cover urgent cash needs and should be used responsibly. Sometimes a Cash Advance refers to individual draws on a Line of Credit account.

Cash Advance Fee:

A fee that a consumer incurs each time they withdraw funds from their Line of Credit.

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 Check:

A Credit Check is a tool often used by Direct Lenders to assess a consumer’s creditworthiness as part of the loan approval process. Credit is checked by pulling information regarding a consumer’s Credit History from sources such as Credit Bureaus.

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 Limit:

The maximum amount of credit that a lender will extend to a consumer. In the context of a Line of Credit, this is the maximum amount the customer can borrow.

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 number of 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.

Credit Services Organization (CSO):

A licensed CSO is not a lender. A CSO helps a customer obtain a Loan from an unaffiliated third-party lender and earns money for providing these services. In Texas, MoneyKey is licensed as both a CSO and a Credit Access Business (CAB).

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 in 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.

Daily Periodic Rate:

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.

Effective Date of Agreement:

For Lines of Credit offered through MoneyKey, the Effective Date of Agreement refers to the date on which the Line of Credit is active.

Effective Date of Draw:

For Lines of Credit offered through MoneyKey, the Effective Date of Draw refers to the date the customer receives a requested draw.

Effective Date of Loan:

For Installment Loans offered through MoneyKey, the Effective Date of Loan is the date a borrower receives the funds.

Fair Isaac Corporation (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 of determining an individual’s creditworthiness by assigning them a Credit Score.

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 MoneyKey, 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:

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

Installment Payment:

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.

Interest:

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

Line of Credit (LOC):

An open-ended, revolving form of credit. The borrower can borrow any amount from the lender up to their approved credit limit as long as they have available credit. The available credit can be withdrawn at once or over a period of time. If there is an Outstanding Balance on an LOC, the borrower will be responsible for making Minimum Payments.

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/Line of Credit Agreement:

A legally-binding document which details the terms and conditions of a Loan/Line of Credit.

Loan Matching Service:

An organization that tries to match a borrower with a third-party lender based on information provided by the borrower in an application. These Loan Matching Services often operate online.

Loan Term:

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

Minimum Payment:

In the context of a Line of Credit, the minimum amount required to be paid for each Billing Cycle, as detailed in the Periodic Statement. A Minimum Payment typically consists of fees and/or interest accrued during the Billing Cycle. For Lines of Credit available through MoneyKey, the Minimum Payment will include interest/fees/charges and a Mandatory Principal Contribution. How the Minimum Payment will be calculated for a particular Line of Credit should be set out in the Line of Credit Agreement between the borrower and the lender.

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.

Open-End Loan:

A Loan between a lender and a borrower with no fixed term or end date. It is sometimes referred to as a revolving loan since a borrower can draw from it repeatedly, so long as they have available credit. A Line of Credit is an example of an Open-End Loan.

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.

Periodic Statement:

A statement that details the activity on a Line of Credit account including withdrawals, payments, fees/interest/charges assessed, as applicable, for a particular Billing Cycle.

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.

Revolving Credit:

A form of Credit where if approved, a borrower can repeatedly access funds from their available credit as long as their account is open and any required Minimum Payments are made on time. Unlike closed-end credit products such as Payday Loans and Installment Loans, this type of credit does not have a fixed number of payments. The Lines of Credit offered through MoneyKey are types of revolving credit.

Secured Loan:

A Loan that requires a borrower to provide Collateral to a lender as a condition of the Loan. In the event that 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.

Statement Date:

The date the Periodic Statement is generated.

Title Loan:

A type of Secured Loan that requires a borrower to pledge an asset as Collateral – the value of the Collateral is typically the main consideration in determining the amount that the lender is willing to lend for this type of Loan. The lender typically does not review the borrower’s credit rating for this type of Loan. A car Title Loan is a common type of Title Loan.

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.

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Not all applications are approved; duration of approval process may vary. Credit limits/loan amounts are subject to further verification criteria. If you are a returning customer, loan amounts may vary.

*If approved, any requested funds may typically be deposited into your bank account the same business day; timing of funding may vary by product and state. The date and time funds are made available to you by your bank are subject to your bank's policies. For specific funding cut-off times, click here.

**You may request a draw from your Line of Credit at any time, so long as you have available credit and your account is in good standing. In the State of South Carolina, you can withdraw the total credit available to you all at once, or in smaller amounts over time as you need it, with a required minimum draw of $610.

Applications submitted on this website may be originated by one of several lenders, including: CC Flow, a division of Capital Community Bank, a Utah Chartered bank, located in Provo, Utah, Member FDIC. CC Flow will be responsible for underwriting, approving and funding the CC Flow Line of Credit. The CC Flow Line of Credit is available through MoneyKey.

Product availability varies by state. To see loan products offered in your state of residence, please visit our Rates and Terms page.

MoneyKey – TX, Inc. is licensed as a Credit Access Business (CAB), License No. 16641-62815, by the Office of the Consumer Credit Commissioner and registered as a Credit Services Organization (CSO), Registration No. 20110150, by the State of Texas. All loans for which MoneyKey acts as a CSO/CAB are funded by an unaffiliated third-party lender and serviced by MoneyKey. In the State of California, MoneyKey – CA, Inc. is licensed by the Department of Financial Protection and Innovation pursuant to California Deferred Deposit Transaction Law License No.1004516.

Reviews and any ratings referenced are based on Trustpilot reviews. Images are for illustrative purposes only. Reviews reflect individuals’ opinions and may not be illustrative of all individual experiences with MoneyKey.