This Definitions page is provided to help consumers better understand common banking, lending, credit, and financial terminology that may appear throughout the loan request process.
A network used to electronically transfer funds between bank accounts.
The annual cost of credit expressed as a percentage. APR may include interest and certain fees associated with borrowing.
See APR.
The amount of money currently available in a bank account or the amount still owed on a debt.
A legal proceeding that may help individuals eliminate or repay debts under the protection of federal bankruptcy laws. Bankruptcy records may remain on a credit report for up to ten years.
A financial plan used to manage income, expenses, and savings.
The maximum limit by which an adjustable interest rate may increase during a specified period.
A short-term advance of funds that may be provided through certain financial products or services.
A debt that a creditor has determined is unlikely to be collected. The debt may still be legally collectible.
A bank account that allows deposits, withdrawals, debit card purchases, and check-writing activities.
Property or assets pledged to secure repayment of a loan.
Interest calculated on both the original principal and accumulated unpaid interest.
An individual who agrees to share responsibility for repayment of a loan if the primary borrower fails to repay.
The ability to borrow money or obtain goods and services with the promise of future payment.
An application submitted to obtain credit from a lender.
An organization that collects and maintains consumer credit information. Major U.S. credit bureaus include Experian, Equifax, and TransUnion.
A payment card issued by a financial institution that allows purchases on borrowed funds.
A service designed to help consumers manage debt and improve financial situations.
The maximum amount available on a credit card or line of credit.
The maximum amount of credit available to a borrower from a lender.
A record containing information about an individual's credit history, debts, payment history, and public records.
A person or business to whom money is owed.
A payment card linked directly to a checking account.
Money owed to a lender, creditor, or financial institution.
The process of combining multiple debts into a single payment obligation.
Failure to repay a loan according to the agreed terms.
Failure to make a required payment by the due date.
Electronic transfer of funds directly into a bank account.
A federal law prohibiting discrimination in credit transactions.
An electronic signature used to sign documents digitally and legally.
A federal law regulating the collection, accuracy, and use of consumer credit information.
An independent U.S. government agency that insures eligible bank deposits.
The total cost of credit expressed in dollars.
An interest rate that remains unchanged throughout the term of a loan.
A legal process through which a lender may take possession of pledged property due to nonpayment.
A loan repaid through scheduled payments over a specified period.
The cost charged by a lender for borrowing money.
The percentage charged on borrowed funds.
A court decision determining the rights and obligations of parties in a legal dispute.
A fee charged when a payment is not received by the due date.
A contractual agreement allowing use of property in exchange for payment.
A financial institution or business that provides or facilitates loans.
Legally responsible for an obligation or debt.
A legal claim against property used as security for a debt.
Money borrowed with the expectation of repayment, generally with interest.
A contract outlining the terms and conditions of a loan.
A loan used to purchase real estate where the property serves as collateral.
Information obtained from government sources, including certain legal and financial records.
Replacing an existing loan with a new loan, often to obtain different terms.
The act of recovering property used as collateral after borrower default.
The legal right to cancel certain transactions within a specified period.
A deposit account that generally earns interest while allowing funds to be stored securely.
A loan backed by collateral pledged by the borrower.
See Security or Collateral.
Interest calculated only on the outstanding principal balance.
A document establishing ownership of property.
A federal law requiring lenders to disclose important loan terms and costs to consumers.
A loan that does not require collateral and is granted based primarily on a borrower's creditworthiness.
An interest rate that may change over time based on market conditions.
The effective return earned on certain financial products such as savings accounts, bonds, or money market accounts.
The definitions provided on this page are intended solely for informational purposes and should not be considered legal, financial, tax, or lending advice.
Specific loan terms, rates, fees, repayment obligations, and disclosures are determined exclusively by participating lenders and lending partners. Consumers should carefully review all loan documents before accepting any loan offer.
Last Updated: June 2026