Payday Loan Glossary

Before you take out a payday loan, you should familiarize yourself with a few important borrowing terms. Here are the terms every payday loan borrower should know.

APR - annual percentage rate. The APR represents the cost of borrowing instant no fax payday loans and is traditionally displayed as a percentage on the consumer loan agreement. According to federal law, lenders must disclose the APR of the loans they issue.

Balance - the amount of money owed on instant no fax payday loans. This amount includes the principal of the loan and the finance charge.

Cash advance - an advance on a borrower's payday in the form of a cash loan. Used synonymously with payday loans in most cases.

Collateral - property that secures a loan or other credit and is subject to seizure if the borrower fails to repay the loan as agreed.

Default - failure to repay a loan as agreed.

Faxless payday loan - loans that do not require the borrower to fax in documents, such as paystubs, copies of bank statements, etc., to support the application material.

Finance charge - the fee a lender assesses when money is borrowed. With instant no fax payday loans, finance charges are usually expressed as a percentage of the amount borrowed.

Interest - the amount of money paid to the lender in exchange for the convenience of borrowing. With instant no fax payday loans, the interest is usually referred to as a finance charge.

Payday loan - payday loans are small cash loans made against the borrower's next payday. This will vary by lender, but most payday loans use the borrower's next paycheck as collateral, and so the loan is due on the borrower's next payday.

Principal - the amount of the instant no fax payday loan. For example, if you take out a loan of $200 and have to pay a finance charge of $20, you would have to repay your lender $220 total on the due date, $200 of which would be the loan's principal.

Please read our Frequently Asked Questions page if you have any inquiries.