ACH
An ACH, or automated clearing house, is responsible for all the electronic cash transactions that occur daily, typically during the week only. In the UK BACS Ltd is our clearing house, which is owned by a number of banks and other financial institutions on behalf of the payments industry.
Agreement
A loan agreement is a contract entered into by at least two parties between which regulates the terms of a loan. Signing a loan agreement makes you responsible for keeping to the agreed arrangements for repaying the loan. Therefore you should always consider affordability and look at the terms closely when completing any offer of credit.
Advance
The amount of money you want to borrow. This is your loan advance.
Annual Percentage Rate or Overall Cost for Comparison (APR)
An APR is the true and total cost of borrowing. Where an APR is quoted it will be based on the total charge for credit including fees and other charges for arranging a loan. This figure allows you to compare the cost of different loan products.
Arrangement Fee
An arrangement fee is a fee payable to the credit provider and is specific to the loan product you’ve chosen. The fee can be added to the amount you want to borrow or can be paid upfront. 24/7 Moneybox do not charge upfront arrangement fees but lots of loan providers out there do.
Arrears
Arrears are the amount, usually in either months or pounds that your payments have fallen behind schedule.
Asset
Any form of property owned by a person, including currency, stocks, and enforceable claims against others.
Balance Outstanding
The amount of loan owed at a particular time.
Bank of England Base Rate
The Bank of England Base Rate is the rate of interest set by the Bank of England and is officially called the Bank of England repo rate.
Bridging Loan / Bridging Finance
A temporary loan advanced to help you buy a new property before you sell your existing one.
County Court Judgment (CCJ)
A CCJ is a ruling for bad debt issued by a County Court or higher court. The judgment is recorded and will show up during any credit checks and can count against you in your mortgage or other consumer credit applications.
Credit Reference Agencies
Organisations licensed under the Consumer Credit Act 1974 to hold information about the credit history of individuals. Lenders refer to these agencies to assist in making decisions about your application.
Credit search
A check some lenders makes with a specialist company to find out whether you have any County Court Judgements or a record of not paying loans, credit-card bills etc. 24/7 Moneybox don’t credit check initial applications so we can provide you with instant approvals and fast payday loans.
Credit Scoring
The system many Lenders use to help them decide whether they can lend money to you. They'll ask a series of questions about you and your finances and score your answers. Your score will result in you being accepted or declined a loan.
Debt Consolidation
The process of combining outstanding debts e.g. loans, credit cards etc, into one loan. Many customers consolidate their existing debts with a homeowner loan.
Direct Debit
A Direct Debit is an instruction from a customer to their bank or building society to make regular payments direct from their account.
Early Repayment or Settlement Charge
A charge payable on some loans and mortgages if they are repaid early. The amount depends on the loan outstanding and its terms. 24/7 Moneybox do not charge an early repayment charge.
Equity
If your house is worth more than the mortgage on it, the difference is known as the 'equity'. So for example, if your outstanding mortgage is £50,000 and your home is worth £60,000, you have equity of £10,000.
Equity Release
Equity release schemes give home owners a way to turn some of the value of their homes into cash. Either a lump sum, regular extra income, or sometimes both.
Fixed-rate Interest
An interest rate that stays the same rate for a specific period of time. This is how 24/7 Moneybox charge interest on our payday loans.
Gross Interest Rate
Interest earned before any income tax is taken away. Net refers to after tax has been deducted.
IFA
Independent Financial Advisor.
Interest
Compensation paid or to be paid for the use of money, measured in terms of a percentage per annum of the principal amount. I.e. this is the amount you have to pay on top of paying the loan (principal) amount back.
Ombudsman
An independent professional body which is set up by law to help settle individual disputes between consumers and firms such as estate agents, solicitors and insurance companies.
Online Payday Loans
Exactly what 24/7 Moneybox offer! Refers to payday loans that are applied for over the internet. In our experience there are hardly any companies in the market place that offer a true online service and often need the borrower to fax documents, post in ID or speak to a machine in a call centre. However we are different 24/7 Moneybox is faxless, postageless, phonecallless payday loan provider!
Payday Advance
This is another term to describe a payday loan (see below).
Payday Loan
A payday loan (also called a paycheck advance or payday advance) is a small, short-term loan that is intended to cover a borrower's expenses until his or her next payday. This is what 24/7 specialise in.
Solicitor
Legal expert handling all documentation for the sale and purchase of a property.
Subject to Contract
Words to indicate that an agreement is not yet legally binding.
Term
The period over which the loan is to be repaid. This period will be on the loan offer.
Total Amount Payable
The total cost of repaying a loan.
Unsecured Loan
A loan provided to a borrower without them having to provide any security such as a charge over their house. Because the risk to the lender of not getting their money back is higher for unsecured loans than for secured loans, the interest rate charged is often higher. Unsecured loans are also sometimes referred to as personal loans. Payday loans are a form of personal loans.
Variable Interest Rate
Rate of interest payment that fluctuates over time with general interest rates. Our interest rates are fixed i.e. they do not change over time and remain the same as when you took out the payday loan for the life of that loan.
