Definitions and Resources
LendNation Financial Terms Glossary
We are clearly defining complex terms in a way that makes them easy for our customers to understand. Click on a term in this financial terms glossary to learn more.
A detailed table that outlines the repayment plan for an amortizing loan, showing each payment’s breakdown of principal and interest over time.
The process of moving an existing debt from one credit card or loan to another, often to take advantage of lower interest rates or better terms.
An individual or entity that receives funds from a lender with the agreement to repay the borrowed amount, typically with interest.
An asset or property that a borrower pledges as security for a loan. If the borrower defaults, the lender can seize and sell the collateral to recover the loan amount.
A credit score is a numerical expression based on a statistical analysis of an individual’s credit information, which is used to represent the creditworthiness of that individual.
The percentage of a borrower’s available credit limit that is currently being used. It is an important factor in calculating credit scores.
Combining multiple debts into a single loan or payment to simplify financial management and potentially reduce interest costs.
Failure by a borrower to meet the agreed-upon terms of a loan, such as missing payments or not repaying the loan at all.
The value of an asset, such as a property or investment, minus any outstanding debts or liabilities.
A separate account where funds are held by a third party, typically to cover property-related expenses such as taxes and insurance.
The range of possible values for a FICO credit score, typically between 300 and 850, with higher scores indicating better creditworthiness.
A credit score based on an individual’s credit history, used by lenders to assess the borrower’s creditworthiness.
A specified period after the due date during which a borrower can make a late payment without incurring penalties.
A credit check made by a lender or financial institution when a borrower applies for a loan, potentially affecting the borrower’s credit score.
HELOC (Home Equity Line of Credit)
A revolving line of credit secured by the equity in a borrower’s home, allowing them to borrow funds as needed.
A loan with a fixed number of regular payments (installments) covering both principal and interest over a predetermined period.
Instant Debit Card Funding
Instant debit card funding is available when you choose to pre-authorize the repayment of your installment, title, line of credit, or payday loan with the same debit card used to fund it.
A Joint Account is an account held by two or more individuals who share responsibility for its management and any associated debts or liabilities.
A banking service that allows customers to perform basic financial transactions, such as deposits and withdrawals, at self-service kiosks.
The entity or individual that provides funds to a borrower with the expectation of repayment, typically with interest.
Line of Credit
A line of credit is a more flexible type of loan compared to an Installment Loan or Payday Loan, and you can use it whenever you need extra cash. You can borrow up to a set amount, your credit limit, and pay it back over time or right away, and then borrow again up to the same limit.
A financial ratio that compares the amount of a loan to the appraised value of the asset being financed, often used in real estate lending.
The date on which a loan or financial instrument must be repaid in full.
A situation in which a borrower’s payments do not cover the interest due, causing the loan balance to increase.
The difference between an individual’s or entity’s total assets and total liabilities, representing their overall financial value.
A fee charged by a lender to cover the costs associated with processing a loan application.
A situation in which a bank account’s balance goes below zero, allowing the account holder to make transactions but incurring fees or interest.
Payday loans and online payday loans are short-term cash loans of small dollar amounts typically paid back with your next paycheck. A payday loan can give you access to quick cash when you need it most, whether it’s for daily expenses or unexpected emergencies.
An initial assessment by a lender to estimate a borrower’s eligibility for a loan, based on basic financial information provided by the borrower.
The initial amount of money borrowed, excluding interest and fees.
A structured schedule for repaying a loan, specifying the amount and frequency of payments.
A loan that is backed by collateral, which the lender can seize if the borrower defaults.
The process of bundling loans or financial assets into securities that can be bought and sold in financial markets.
A short-term loan in which the borrower uses their vehicle’s title as collateral.
A situation in which the outstanding balance of a mortgage exceeds the current value of the underlying property.
The process by which lenders evaluate a borrower’s creditworthiness and risk before approving a loan.
Variable Interest Rates
An interest rate that can change over time, typically based on market conditions or a predetermined index.
Variable Rate Mortgages
A mortgage with an interest rate that can change periodically, often in response to changes in a specific financial index.
Zero Down Payment
A financing option in which the borrower does not make an initial down payment when purchasing a property or asset, with the full purchase price financed by the lender.