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.

Amortization Schedule

A detailed table that outlines the repayment plan for an amortizing loan, showing each payment’s breakdown of principal and interest over time.

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Balance Transfer

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.

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Borrower

An individual or entity that receives funds from a lender with the agreement to repay the borrowed amount, typically with interest.

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Collateral

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.

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Credit Score

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.

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Credit Utilization

The percentage of a borrower’s available credit limit that is currently being used. It is an important factor in calculating credit scores.

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Debt Consolidation

Combining multiple debts into a single loan or payment to simplify financial management and potentially reduce interest costs.

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Default

Failure by a borrower to meet the agreed-upon terms of a loan, such as missing payments or not repaying the loan at all.

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Equity

The value of an asset, such as a property or investment, minus any outstanding debts or liabilities.

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Escrow

A separate account where funds are held by a third party, typically to cover property-related expenses such as taxes and insurance.

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FICO Range

The range of possible values for a FICO credit score, typically between 300 and 850, with higher scores indicating better creditworthiness.

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FICO Score

A credit score based on an individual’s credit history, used by lenders to assess the borrower’s creditworthiness.

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Grace Periods

A specified period after the due date during which a borrower can make a late payment without incurring penalties.

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Hard Inquiries

A credit check made by a lender or financial institution when a borrower applies for a loan, potentially affecting the borrower’s credit score.

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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.

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Installment Loan

A loan with a fixed number of regular payments (installments) covering both principal and interest over a predetermined period.

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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.

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Joint Accounts

A Joint Account is an account held by two or more individuals who share responsibility for its management and any associated debts or liabilities.

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Kiosk Banking

A banking service that allows customers to perform basic financial transactions, such as deposits and withdrawals, at self-service kiosks.

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Lender

The entity or individual that provides funds to a borrower with the expectation of repayment, typically with interest.

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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.

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Loan-to-Value Ratio

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.

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Maturity Date

The date on which a loan or financial instrument must be repaid in full.

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Negative Amortization

A situation in which a borrower’s payments do not cover the interest due, causing the loan balance to increase.

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Net Worth

The difference between an individual’s or entity’s total assets and total liabilities, representing their overall financial value.

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Origination Fee

A fee charged by a lender to cover the costs associated with processing a loan application.

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Overdraft

A situation in which a bank account’s balance goes below zero, allowing the account holder to make transactions but incurring fees or interest.

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Payday Loan

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.

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Pre-Qualification

An initial assessment by a lender to estimate a borrower’s eligibility for a loan, based on basic financial information provided by the borrower.

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Principal

The initial amount of money borrowed, excluding interest and fees.

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Repayment Plans

A structured schedule for repaying a loan, specifying the amount and frequency of payments.

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Secured Loans

A loan that is backed by collateral, which the lender can seize if the borrower defaults.

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Securitization

The process of bundling loans or financial assets into securities that can be bought and sold in financial markets.

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Title Loans

A short-term loan in which the borrower uses their vehicle’s title as collateral.

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Underwater Mortgage

A situation in which the outstanding balance of a mortgage exceeds the current value of the underlying property.

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Underwriting Loans

The process by which lenders evaluate a borrower’s creditworthiness and risk before approving a loan.

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Variable Interest Rates

An interest rate that can change over time, typically based on market conditions or a predetermined index.

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Variable Rate Mortgages

A mortgage with an interest rate that can change periodically, often in response to changes in a specific financial index.

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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.

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