Cash Advance Glossary
In an effort to make understanding the payday loan process easier, we offer the following list of commonly used payday loan terms and their definitions.
- Approved: Being approved, in terms of payday loans, means that you have met the criteria issued by the lender in order to obtain the loan.
- Apply: This is the process of providing the requested information to the lender. For example, your bank statement, social security number, account number, etc.
- Bank Statement: This is a document outlining the activity of your checking account normally issued by your bank.
- Borrower: Commonly referred to as applicant, the borrower is the potential client or customer intending to obtain the loan.
- Borrower's Integrity: This is an undisclosed rating of the applicant, normally ruined when the applicant applies to too many lenders at the same time or has a bad reputation with another payday loan lender.
- Cash Advance: Same as a payday loan, this is a provision of cash borrowed against the applicant's forthcoming paycheck.
- Checking Account: The applicant's account with a banking institution. Lenders normally require the direct deposit feature on this account to be able to wire the funds directly into the account.
- Credit Check: This is the process of reviewing information on the applicant's capability to abide to their financial responsibilities. Most payday loan lenders do not require this.
- Direct Deposit: A common term used to refer to the process of transferring funds (making a deposit) into your account electronically.
- Fax (Facsimile): This is an electronic device that allows a user to issue a recipient a copy of a document as it appears via a specialized phone line.
- Fees: Payday loan lenders normally charge a fee against the amount borrowed—the higher the amount the higher the fee. It's considerably low compared to APR charges from credit card companies.
- Payday Loan: Like a cash advance, this is a loan taken out based on an expected paycheck that will cover the loan amount and the fees acquired with it.
- Paycheck: The applicant's weekly, bi-weekly, or monthly income that they obtain from their employers.
- Wire Transfer: The computerized process by which money or funds are moved from one account to another electronically. This is a very quick way of channeling money into an account.