by crispin0 | Jul 27, 2025 | Uncategorized
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 | Jul 24, 2025 | Uncategorized
The loan term refers to the period during which the borrower must repay the loan in full. It can range from a few days to several years. Loan terms impact the interest rate and monthly repayment amount.
by crispin0 | Jul 21, 2025 | Uncategorized
A secured loan requires the borrower to pledge an asset (e.g., a car or home) as collateral to back the loan. If the borrower defaults, the lender can seize the collateral to recover their loss. These loans usually offer lower interest rates due to reduced risk for...
by crispin0 | Jul 18, 2025 | Uncategorized
A loan application is a formal request submitted by an individual or business to a lending institution for financial assistance. This request typically requires personal details, credit information, income verification, and other supporting documents. The lending...
by crispin0 | Jul 13, 2025 | Uncategorized
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 | Jul 5, 2025 | Uncategorized
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 27, 2025 | Uncategorized
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 21, 2025 | Uncategorized
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 12, 2025 | Uncategorized
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 6, 2025 | Uncategorized
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 3, 2025 | Uncategorized
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 | May 23, 2025 | Uncategorized
A hard inquiry occurs when a lender checks a borrower’s credit report as part of the loan application process. This inquiry can affect the borrower’s credit score, and multiple hard inquiries within a short time may signal financial instability to potential...
by crispin0 | May 21, 2025 | Uncategorized
A soft inquiry happens when a borrower’s credit report is checked for reasons other than a loan application, such as for pre-approval offers or identity verification. Soft inquiries do not impact the borrower’s credit score.
by crispin0 | May 19, 2025 | Uncategorized
A late payment fee is a charge that a lender imposes when the borrower fails to make a scheduled payment on time. These fees can add up quickly and increase the total cost of the loan.
by crispin0 | May 18, 2025 | Uncategorized
Early repayment occurs when the borrower pays off the loan before the due date. Some lenders offer incentives or discounts for early repayment, while others may charge a prepayment penalty to discourage it.
