by crispin0 | Jun 18, 2025 | Terminologies
This is a fee charged by lenders for processing a loan application. It covers the administrative costs of reviewing and processing the borrower’s request. Not all loan apps charge an application fee.
by crispin0 | Jun 17, 2025 | Terminologies
APR represents the total cost of borrowing, including interest and fees, expressed as an annual percentage. It provides borrowers with a clear understanding of the cost of a loan over a year. A higher APR indicates a more expensive loan.
by crispin0 | Jun 16, 2025 | Terminologies
A balance transfer allows a borrower to move an existing debt from one loan or credit account to another, usually to secure lower interest rates. Many online lending apps offer this service to borrowers with high-interest debts.
by crispin0 | Jun 15, 2025 | Terminologies
The borrower is the individual or business applying for the loan. Borrowers are required to meet certain criteria, such as a minimum credit score, before they are eligible for approval.
by crispin0 | Jun 14, 2025 | Terminologies
A cash advance is a short-term loan, often provided via credit cards or payday loan apps. It allows the borrower to access funds quickly, usually with higher interest rates. Cash advances are typically meant for emergencies.
by crispin0 | Jun 13, 2025 | Terminologies
Cash flow refers to the movement of money into and out of a borrower’s account. Lenders consider cash flow when approving loans, as it indicates the borrower’s ability to make timely payments.
by crispin0 | Jun 12, 2025 | Terminologies
Cash limit refers to the maximum amount a borrower can withdraw or borrow through a loan app. This limit can be determined by the borrower’s credit score, income, or repayment history.
by crispin0 | Jun 11, 2025 | Terminologies
A cash reserve is money set aside for future expenses or emergencies. Some lending apps offer loans that can be repaid using a borrower’s cash reserve or savings account.
by crispin0 | Jun 10, 2025 | Terminologies
Collateral refers to an asset pledged by the borrower to secure a loan. If the borrower defaults on the loan, the lender can seize the collateral to recover their losses. Common types of collateral include property, cars, and financial assets.
by crispin0 | Jun 9, 2025 | Terminologies
A cosigner is someone who agrees to take responsibility for a loan if the borrower defaults. A cosigner with good credit can help a borrower secure a loan with better terms or approval if the borrower has limited credit history.
by crispin0 | Jun 8, 2025 | Terminologies
A credit check is the process of reviewing the borrower’s credit history to assess their creditworthiness. Loan apps often perform a soft or hard credit check to decide whether to approve the loan and set terms.
by crispin0 | Jun 7, 2025 | Terminologies
A credit score is a numerical representation of a borrower’s creditworthiness, based on their credit history. It is used by lenders to evaluate the likelihood that the borrower will repay the loan. Scores range from poor to excellent, with higher scores indicating...
by crispin0 | Jun 6, 2025 | Terminologies
Credit utilization refers to the percentage of available credit a borrower is using. A high credit utilization ratio can negatively impact the borrower’s credit score and ability to secure loans.
by crispin0 | Jun 5, 2025 | Terminologies
Debt collection is the process of recovering overdue loans or debts. Online lending apps may use in-house teams or third-party agencies to collect on defaulted loans.
by crispin0 | Jun 4, 2025 | Terminologies
Debt recovery is the process of collecting owed funds from a borrower who has defaulted on their loan. It can involve negotiating a payment plan or pursuing legal action.
