The ABCs of borrowing money

Amortization– the paying off of debt with a fixed repayment schedule in regular installments over a period of time for example with a mortgage or a car loan

APR– Annual Percentage Rate- the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc.

Assets– any item of value that a person owns

Bankrupt– a financial situation in which a court declares one’s debts to be greater than the total value of one’s assets

Borrower–  A person or company that has received money from another party with the agreement that the money will be repaid. Most borrowers borrow at interest, meaning they pay a certain percentage of the principal amount to the lender as compensation for borrowing.

Cash Value– the amount that an insurance policy is worth if canceled before maturity. An insurance company will lend to a policyholder based on his or her policy.

Co-applicant, Joint applicant, Co-signer– someone who signs a loan with the borrower, thus accepting legal responsibility for paying the debt if the borrower default or does not pay

Collateral– a property or other asset that a borrower offers as a way for a lender to secure the loan. If the borrower stops making the promised loan payments, the lender can seize the collateral to recoup its losses.

Cooling off period– a period of time after the loans origination when the borrower may cancel the loan without any penalties, or the period of time that must pass before a borrower is allowed to request a second loan from the same lender

Co-ownership– joint ownership between two or more persons

Creditor– lender; one to whom money is owed

Credit References– people who will recommend the credit applicant as a good credit risk.

Debt– money owed

Debt Balance– amount still owed on a debt at a given time

Default– failure to fulfill the terms of the loan agreement, failure to continue making loan payments

Dependents– those who rely on a person for support

Finance Charge– the total cost to use credit, including interest, loan fees, and credit insurance

Foreclosure– is the legal process by which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor’s equitable right of redemption

Interest– the amount paid for the use of borrowed money

Interest Rate– the percentage of the principal that a borrower pays for the use of borrowed money

Lender– an individual, a public group, a private group or a financial institution that makes funds available to another with the expectation that the funds will be repaid, in addition to any interest and/or fees.

Liabilities– financial obligations, or money owed

Long-Term Loans– Loans for larger purchases, such as a home or a car

Mortgage– a loan for purchasing real estate. If the borrower does not repay the loan according to the terms of the contract, the lender can legally force the sale of property to pay off the loan.

Mortgage Holder– person or institution that made the mortgage loan

Payment amount–  The amount a borrower must pay in full each due date

Payment due date– The date a borrower is required to make a payment toward the balance of their loan

Personal Loans– short-term or intermediate-term loans that are relatively small

Principal– the original sum of money borrowed in a loan, or the part of the amount borrowed which remains unpaid (excluding interest), here also called principal amount.

Proceeds– the amount of money a borrower receives from the loan

Real Estate– land and property attached to the land

Repayment term– The period of time in which a borrower must repay the money borrowed

Repossess, Reclaim– to take back what was sold on an installment plan or loan if payments are not made as agreed

Secured loan– a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan

Securities– stocks and bonds

Unsecured loan– a loan that is issued and supported only by the borrower’s creditworthiness, rather than by any type of collateral. An unsecured loan is one that is obtained without the use of property as collateral for the loan, and it is also called a signature loan or a personal loan. Borrowers generally must have high credit ratings to be approved for certain unsecured loans.



Online Personal Loans Up To $3,000. Even if you’ve filled out their online form and received an offer from one of their lenders, you are not obligated to accept any offer if it doesn’t work for you.

Max loan amount:
$3000
Min Credit Score:
Age:
18 years
A good personal loan:

– Fill Out a Simple Form
– Get Connected with a Lender
– Money is Deposited Directly

Payday Loans up to $1,000. You will be connected with one lender and receive your loan decision. Super easy!

Max loan amount:
$1000
Min Credit Score:
Age:
18 years
A good personal loan:

– Fill Out a Simple Form
– Get Connected with a Lender
– Money is Deposited Directly

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Max loan amount:
$50000
Min Credit Score:
620
Age:
18 years
A good personal loan:
  • Good for those with little credit history
  • Origination fee: 1% to 6% of loan amount, depending on borrower’s grade
  • Late fees: Greater of $15 or 5% of payment amount
  • Personal-check processing fees: None
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    Max loan amount:
    $100000
    Min Credit Score:
    0
    Age:
    18 years
    A good personal loan:
  • Good for those with little credit history and high income
  • No origination fee
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  • Late fees: 4% of payment due or $5, whichever is lower
  • Personal-check processing fees: None
  • Loans for your life. Consolidate your high interest loans and save. Although that you can’t borrow your way out of debt, consolidating all of your high interest loans into one debt consolidation loan through Prosper could save on the amount of interest you’re charged each month.

    Max loan amount:
    $35000
    Min Credit Score:
    640
    Age:
    18 years
    A good personal loan:
  • Suitable for those with good credit profiles
  • Origination fee: 1% to 5% of the loan amount, depending on the borrower’s Prosper grade
  • Late fees: Greater of $15 or 5% of the payment amount
  • Personal-check processing fees: None
  • Fill out a 5-minute application and have funds directly deposited into your checking account as early as the next day.

    Max loan amount:
    $25000
    Min Credit Score:
    600
    Age:
    18 years
    A good personal loan:
  • Ideal for borrowers with average credit who want to complete the process online
  • Origination fee: Varies, but typically 5% of loan amount
  • Late fees: Varies by state