Peachy

Loan Glossary

Payday loan glossary

Acceptance Rate
This is the percentage of customers who are successful in their application for loan or credit card.
ACH
Automated Clearing House manages electronic cash transactions, which in the UK are processed by BACS Ltd.
Adjustable Rate
It is an interest rate that changes periodically in relation to an index. Payments may increase or decrease accordingly.
Adverse Credit Rating
If a borrower is described as having adverse credit, they are essentially viewed as being unreliable in the eyes of the lending industry. Adverse borrowers typically struggle to obtain credit.
AER
It is Annual Equivalent Rate.
Applicants Fee
In some instances loan applicants will be charged a fee by their loan provider. Although not typical of the entire industry, some credit providers charge fee's as a means to cover their set-up costs.
APR (Annual Percentage Rate)
The APR indicates the real rate of interest payable over a year once fees, charges and admin costs are factored in that the borrower have to repay. This enables consumers to compare deals more easily.
Approved
Being approved, in terms of online payday loans, means that you have met the criteria issued by the payday lender in order to obtain the payday loan.
Apply
Applying is the process of requesting funds from a payday loan lender. This usually involves providing the requested information to the lender. For example, your bank statement, national insurance code, account number, etc.
Arrangement Fee
A charge to cover administration costs.
Arrears
The term arrears are used to describe any occasion where a borrower has failed to meet their loan repayment commitments.
Asset
An asset is effectively anything owned by an individual, which is considered to be valuable. In the case of secured loans, the applicant’s home would be viewed as the asset for which the loan is secured against.
Average Daily Balance
The average daily balance is a method used to calculate finance charges. It is calculated by adding the outstanding balance on each day in the billing period, and dividing that total by the number of days in the billing period. The calculation includes new purchases and payments.
BACS Payment
It is an efficient way to make or receive regular, sterling payments. BACS is ideal for paying salaries and expenses or for payday lenders to collect regular payments from customers.
Bad Credit
Individuals classed as having a bad credit rating will typically have faltered on a number of credit agreements in the past and/or have no credit history for which a lender can benchmark against. When you have bad credit, you have a poor credit rating, and you can be turned down when you apply for credit. This is caused by making late payments, skipping payments altogether, exceeding your credit card limits or declaring bankruptcy. In case of Peachy loans bad credit is not always crucial and you still may get a short term loan from us. Although you will not be able to get a loan from Peachy if you have CCJ registered against you.
Balance
The balance is the remaining amount of money owed. It includes any unpaid balance from the previous month, new purchases, cash advances, and any charges such as an annual fee, late fee or interest. 
Balance Transfer
It is moving a balance (debt) from one credit card to another. This is often done with special checks or forms, or may be offered as an option on some credit card applications. The usual reason is to shift an ongoing debt to an account with a lower interest rate.
Banker's Draft
It is a cheque drawn on the bank itself against either a cash deposit or money taken directly from your own bank account. A banker's draft is a secure way of receiving money from someone you don't know and where cash is inconvenient. Banker's drafts are commonly used for large purchases such as homes and cars.
Bankruptcy
When you declare bankruptcy, you’re legally stating that you’re unable to repay your debts. The debts are erased by the courts, but you won’t be able to get new credit for 7-10 years. Bankruptcies are recorded on your credit report.
Bank Statement
Is an official record outlining the activity of your checking account for a given period of time (usually a month). Bank statements are issued by your bank.
Base Rate
The Bank of England base rate is the percentage at which money is lent to other banking institutions and financial organizations.
Beacon Score
Your beacon score is recorded on your credit report, telling creditors if you’re creditworthy. It’s determined by the amount of activity on your report, including positive factors like timely payment of loans, and negative factors like late payments. Every time you apply for credit, it’s counted as a negative on your beacon score.
Borrower
Also referred to as loan applicant is the person or group applying for a loan.
Borrower's Integrity
It is an undisclosed rating of the credit-worthiness of an applicant. Payday loan lenders use a number of factors for determining this rating, including (but not limited to) credit history and any outstanding or pending payday loans.
Borrowing
To acquire funds from an entity on the understanding that it will be repaid over a set period of time.
Bridging Loan
A bridging loan is a specialist form of finance used by individuals to "bridge" the gap between the purchase of one asset and the sale of another.
Car Finance (Car Loan)
Is a financial agreement, which is obtained for the sole purpose of funding a car. Car finance agreements are typically only available to consumers looking to buy their car through a trade outlet.
Cash Advance
Cash Advance same as a payday loan, this is a provision of cash borrowed against the applicant's forthcoming paycheck (next payday). Cash advances are also commonly referred to as payday loans, payday advances, payday advance loans and fast cash loans.
Cash Loan
Cash loan is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday.
CCJ
A CCJ or County Court Judgment is a legally issued strike against a person’s name, which highlights the fact that said individual, has failed to meet a specific term of a credit agreement (fails to pay an outstanding debt). Unfortunately you will not be able to get a loan from Peachy if you have CCJ registered against you.
CHAPS
Clearing House Automated Payment System enables same-day transfer of funds from one account to another. CHAPS guarantees fast, reliable and secure payments of any value in the UK.
Checking Account
It is 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.
Cleared Balance/Cleared Funds
It means cash or cheque that has been processed through the clearing cycle to arrive in your account.
Clearing Cycle
The process of verifying funds have reached your account.
Closed-end Credit
Generally, any loan or credit sale agreement in which the amounts advanced, plus any finance charges, is expected to be repaid in full over a definite time.
Collateral
Property that is offered to secure a loan or other credit and that becomes subject to seizure on default.
Consolidation Loan
A consolidation loan is a tool used by indebted individuals, as a means to pool a number of debts together into one place. This type of loan allows the borrower to pay off all of his creditors in one go, repaying the sum of their debts (the consolidation loan) to just one provider.
Consumer Credit License
A consumer credit license is a legal document whose ownership is compulsory for any organization wishing to offer credit facilities.
Credit
When you’re extended credit, you promise to pay in the future in order to borrow today which, in effect defers repayment of your debt.
Credit Balance
It is the amount of money in your account.
Credit Card
Is any card, plate, or coupon book that may be used repeatedly to borrow money or buy goods and services on credit (without using cash or cheques).
Credit Limit
Is the maximum amount of money that you can borrow.
Creditworthiness
Creditworthiness is a creditor’s measure of your past and future ability, and your willingness, to repay your debts. This is often determined in part by your consumer credit report.
Credit Check
It is the process of reviewing information on the loan applicant's capability to abide to their financial responsibilities. Most payday loan lenders do not require credit check, but Peachy can check your credit if needed.
Credit History
Your credit history is a record of the debts you’ve borrowed and repaid in the past. Personal credit history is the key indicator towards determining a person's overall credit score.
Credit Limit
The maximum amount of money you may owe to your credit company.
Credit Reference Agency
A credit reference agency is an organization that collects stores and shares personal credit information with other lending and financial institutions.
Credit Repair
Individuals with a tainted credit history may undergo specific credit repair processes as a means to rectify their situation.
Creditors
A creditor is essentially an entity (usually a finance lender) that has provided funds to an individual under specific, mutually agreeable terms.
Credit Scoring System
A statistical system used to determine whether or not to grant credit by assigning numerical scores to various characteristics related to creditworthiness.
Credit Report
It is a record of your credit history based on information from credit card companies, banks and the Courts.
Credit Search
Before processing your application a lender will contact the main credit reference agencies to obtain details of your credit history and any existing credit agreements you may have.
Crisis Loan
Crisis loan is short-term money to advance before next cash injection.
Data Protection Act
A set of compulsory guidelines, which dictates the way in which companies that handle personal data must conform. With Peachy loans you do not need to worry, because your information is safe with us and it is only used to serve you better.
Debit Card
Is a basically plastic cheques. When you pay by debit card the money is taken directly from your bank account within a day or two of the transaction. There is no credit involved since your account is debited the same day you make a purchase. Details of purchases are shown on normal bank statements.
Debt Loan
Any amount of money owed to an individual or company. A debt loan is a specialist product used by consumers who wish to control a number of credit commitments. Debt loans allow the consumer to reduce their monthly outgoings, providing that the repayment of the loan is less than the sum of their credit commitments.
Debt Consolidation
Re-mortgaging or taking a new loan in order to repay other debts or loans. Although as a responsible lender Peachy loans is interested building long-term relationships with you and we will only lend to you again once you've paid back your current loan. This will help you to avoid financially difficult situations.
Direct Debit
It is an instruction from you to your bank or building society allowing someone to take money from your account. The amount of money taken can vary, but you must be told the amounts and dates beforehand. Direct Debits allow you to pay bills automatically from your account on a regular basis.
Default
Default occurs when you fail to meet the terms of your credit agreement.
Disability Living Allowance (Disability Benefits)
It is a financial tax free benefit given by the government to people who need help with personal care.
Direct Deposit
The common term used to refer to the process of transferring funds (making a deposit) into your account electronically.
Doorstep loan
It is a personal, unsecured loan which is delivered by a local agent, literally to your doorstep. The sums of cash involved are usually relatively low but the amount of interest charged is typically a lot higher than with a bank loan or credit card for example. Repayments are also collected via visits to your house.
EAR (Effective Annual Rate)
The interest charged on a bank overdraft not including any fees.
Early Settlement Charge
If a borrower decides to clear the balance of his or her loan earlier than expected, in most cases, the credit provider will charge a penalty fee for doing so. Such fees are applied as a means for the lender to recoup a proportion of the interest that would have been charged over the agreed term of the loan.
Express Cash
Same day sterling and euro fund transfers. It is an electronic transfer of money between two bank accounts, which will clear the payees account on the same working day.
Extension
Mutually agreed delay in the date set for the completion of a payment of a debt
Fast Loan
Fast loan is a short term loan that you need in a hurry and that can be you can applied for online or by text message whenever you are.
Faster Payments
A fast, simple, secure payments solution for urgent, one-off or out of working hours payments.
Fee
Payday loan lenders normally charge a fee against the amount borrowed; the higher the amount the higher the fee.
Financial Jargon Buster
A comprehensive glossary of payday loan related terms to help you understand our terminology. Financial terms well explained in Peachy money jargon buster.
FISA
The Finance Industry Standards Association or FISA is an independent body whose role is to promote best practice within the finance industry.
Fixed Rate
When referring to loans and mortgages, the term fixed rate implies that the rate of interest tagged to any credit agreement will remain static, regardless as to whether market conditions change.
Flexible Rate
Is a rate of interest, which is not set in stone for the duration of the credit term.
Flexible Loan
A Flexible Loan is when you have flexibility in the amount of your monthly payment. You can overpay one month and underpay the next as your finances allows.
FSA
The Financial Services Authority or FSA, is a public sector body whose role is to oversee and regulate the financial services sector. It ensures organizations that provide specific types of financial products or services (such as insurance) strictly conform to industry guidelines.
Gross Income
It is the income of the borrower before taxes or expenses which are deducted and used for qualifying purposes.
Guaranteed Finance
Some credit providers tag the term guarantee into their promotional activities. Although such offers/products do exist, and usually require little in the way of background checks, they are often far more expensive than the more mainstream lines of credit.
Guarantor
If an individual falls outside the normal remit for their chosen form of credit, it is possible for a person to guarantee the agreement on their behalf. In essence, any individual who agrees to become a guarantor is accepting liability on behalf of the original applicant.
IFA
An IFA is an independent financial advisor whose advice can be sought by any individual who requires expert financial help. IFA's tend to operate in the pension, insurance and mortgage arenas.
Instant Loan
An instant loan is issued in real time, overnight, next banking day or in 36 hour.
Interest Rate
The interest charged on a loan is added to the principal to equal the total amount to be repaid by the borrower. It’s sometimes referred to as the cost of borrowing.
Interest Free
Is a credit agreement whereby no form of interest is charged to the account for a set period.
Intermediary
An intermediary is essentially a middleman. Common intermediaries include IFA's and Brokers.
IVA
An IVA is a tool used by individuals who are unable to manage their personal debts. The tool allows the individual to make a proposal to their creditors, with the intention of writing off a proportion of their overall debt value.
Late charge
A fee imposed on a borrower for not paying on time.
Lender
Is a professional body or institute, which provides finance to both individuals and businesses under the conditions that specific terms are both agreed and met.
Loan
Money given to you which you agree to pay back sometime in the future.
Loan Agreement
Is a thorough and concise document, which is issued to a prospective borrower, prior to any funds being released. The terms outlined within the loan agreement must be met before any kind of advancement can be made. The loan terms are also likely to vary dependent on loan type, tenancy and personal circumstance.
Loan applicant
Any person who approaches to a lender for a loan is a loan applicant.
Loan Interest
It is the agreed amount of interest to be added to the requested advancement, over a specific period of time.
Loan Period
The time allowed of paying back the loan.
Loan Shark
An unregulated person or company who usually charges very large amounts of money for loans and behaves in an unscrupulous way. Repayment can be demanded via blackmail or threats of violence.
Loan Term
This is the length of time that you choose to pay your loan over.
Liability
Legal responsibility to repay everything you owe to others.
Multiple Repayments
Multiple repayment option will let you pay back your loan in partial payments. Depending on the amount  you borrow you may choose to pay back your loan in up to 5 installments. 
Net Income
Is the amount of money a person has left each month, week or year after tax and national insurance is deducted.
No Credit Check Payday Loans
Payday loans are for people with bad credit that don't do a full credit check for every application. A simple credit vetting process such as looking up bank records, payslips, and credit card records may be used in the process.
Notice of Default
A notice of default is an official communication by a credit provider, informing the borrower that they are in breach of the set terms as laid out within their credit agreement.
Online Finance
Can be any type of financial product that is offered to customers on an online only application basis (online payday loan). All the applicant needs to do is to sign up online, pass customer evaluation process and in case of approval the requested amount of money will be instantly transferred to his bank account.
Outgoings
Outgoings summarize the entirety of a person’s financial commitments and are usually calculated on a monthly basis. When applying for a loan, a person's outgoings will be used to decide if the plan is realistically affordable.
Outstanding
When you borrow money the amount you have yet to pay back is called the amount outstanding.
Overdraft
A credit facility tagged to a person's current account, which allows the individual certain grace if they happen to overextend themselves financially. Overdrafts are only usually granted to customers that are deemed to be reliable in the eyes of their bank.
Payday Advance
A payday advance (also called a paycheck advance or payday loan) is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday.
Payday Loan
Payday loan is a short-term loan, which is issued to borrowers who need to bridge the gap between the date of application and the day in which they get paid. This type of loans are also called online loans, bad credit loans, cash advance loans, payday cash loans, instant loans, short term loans, cash till payday loans, crisis loans, same day loans, quick loans, fast loans, no credit check loans, paperless and faxless loans or text loans (with mobile applying ability).
Paycheck
It is the applicant's weekly, bi-weekly, or monthly income that they obtain from their employers.
Personal Loan
Are loans available from banks and other financial institutions to private individuals for personal use such as the purchase of a motor vehicle, holiday, home improvements or similar item. No collateral is asked for or given for the loan.
Personal Finance
It is any type of financial product that is issued to the borrower on the understanding that it is to be used for personal reasons only.
Poor Credit Rating
Individuals classed as having a poor credit rating are typically undesirable in the eyes of many lenders. There are a number of factors which can lead the borrower to be classed as having poor credit, typical reasons include failure to conform to any previous credit agreements as well as having a history of defaults, CCJ's and arrear notices. In case of Peachy bad credit is not always crucial and you still may get a short term loan from us. Although you will not be able to get a loan from Peachy if you have CCJ registered against you.
Principal
The principal of a loan is the actual amount borrowed.
Priority Payments
Is the fastest and most secure method of making international payments to any country in the world, in any tradable currency.
Proof of Income
Proof of income is often required when loan providers assess the eligibility of an applicant, for one of their products. Typically, proof of income will include payslips, employer confirmatory letters and bank statements.
Quick Cash Loan
Quick loan is issued in real time, overnight, next banking day or in 36 hour.
Regional Credit Providers
Is a lending or broking firm whose core business activity is purely focused towards a specific region within the UK. Peachy Loan Company is not focused on specific location and is available online all over the UK.
Repayment
It Is procedure of paying-off Lenders/Creditors loan.
Repayment Plan
An agreement detailing how (repayment method), and over what time period, a borrower will repay a loan.
Rollover
When you rollover your payday loan, you extend or renew the loan by paying the fees for the next two weeks, or until your next payday. Every time you do this, you double your costs for the loan.
Transaction
Paying money into or taking money out of an account.
Same Day Cash
Is the ability of the lender to wire the money same day.
Same Day Loan
Same day loan is a payday loan that is deposited on the same day you apply.
Security Interest
Security interest is the creditor’s right to take all or part of the property you offered as security for the loan.
Secured Loan
Also known as a ‘homeowner’ loan, a secured loan is available only to individuals who own their own home. The value of the debt will be secured against the property.
Self-employed
Self-employed people are those who work for themselves rather than an employer.
SEPA Payments
Make international payments as easily as you do domestic payments.
Service Charge
A component of some finance charges, such as the fee for triggering an overdraft checking account into use.
Short Term Loan
Short term loans are considered to be different things by different lenders. A bank for example might consider a loan of one year to be a relatively short term loan. Payday lenders consider as short term loan up to 30 days, which you settle with one simple repayment on the date that you choose. Peachy offers short term text loans for 10 days which is a much more flexible as the loan can be taken out by simple text message.
Statement
It is the monthly bill from a credit card issuer that describes and summarizes the activity on an account. A statement includes the outstanding balance, purchases, payments, credits, finance charges and other transactions for the month.
Statement Date
The date on which a statement is generated, and the month's finance charges (interest) are added to the balance.
Text loan
Text loans are short-term loans (also known as SMS loans or mobile loans) that you can borrow with your mobile phone with simple text message while you are on move. To avail this unique txt loan service you just need to fill a simple online application form, send SMS and get quick cash by very unique and fast way.
Total Amount Repayable
It is the amount of the original loan plus all interest and fees.
Transaction
Each time you pay money into or take money out of your account, it's called a transaction.
Typical APR
Typical APR is the percentage rate of interest charged annually on a loan and is used by lenders/brokers to indicate the true cost of borrowing. A typical APR figure can only be quoted by a broker/lender if it applies to at least 66% of all previous borrowers.
Uncleared Balance
It is the balance of your account including any uncleared funds.
Unemployment Benefit
British government benefit awarded to a person who is currently unemployed but seeking employment. You can apply Peachy loan when your unemployment benefits are at least £600.
Underwriting
As used in the case of personal loans, the underwriting process describes the factors which are reviewed and considered before a decision on the application can be made. In the case of brokers, underwriting may also include a search of prospective lenders for the most suitable loan plan.
Unsecured loan
An unsecured loan or credit agreement does not require the applicant to provide any form of security or collateral as part of the deal. Most personal loans are unsecured.
Variable Rate
Describes the impact of interest on a credit agreement, but more specifically indicates that the actual rate of interest will be subject to change over the term of the agreement.
Verification of employment
It is confirmation that a loan applicant is telling the truth about where he or she works and how much he or she makes.
Widow's Benefit
Widow's benefit or pension is a source of income paid to individuals who have lost their spouses. This income can sometimes be used to support a loan application. Person can apply Peachy loan when the widow’s benefits are at least £600.
Wire Transfer
It is 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.
Withdrawals
It refers to any reduction in funds maintained in a deposit account or mutual fund
Loading nanoRep Online Engagement with Support Software