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Payday Loans Glossary
- Annual Percentage Rate (APR):
The cost of the loan expressed as a yearly rate that includes all costs of the loan such as the
interest rate and fees.
- Automated Clearing House (ACH):
A U.S. electronic funds transfer system used to electronically transfer funds securely between
bank accounts. ACH transfers can be used for direct deposit payrolls and consumer loan (payday loans,
payday advance) funding and payments. Note: Pay1Day.com utilizes ACH transfers for payday loan
- Cash Advance Loan:
This term is commonly used to describe two types of credits: 1. Cash borrowed against a credit
card or 2. Synonomous with a payday loan, payday advance, or paycheck loan which is cash borrowed
against a future-dated paycheck.
- Community Financial Services Association of America (CFSA):
An organization responsible for monitoring the standards and practices within the
payday lending industry.
- Credit Check:
The process of reviewing a borrower's credit history to determine credit lending risks and
worthiness. Note: Pay1Day.com Payday Lender does not run credit checks.
- Credit History:
How a consumer has fulfilled his or her previous debts in the past, usually recorded in a
- Credit Report:
A record of a consumer's past and current credit accounts and payment history.
- Credit Score:
A number used to measure a consumer's credit worthiness, usually between 300 and 800 with the
higher the number being better.
An obligation, usually money, goods or services, owed to another.
A failure to fulfill a predefined loan obligation such as untimely payments.
A past due account resulting from failure to pay an account obligation.
- Direct Deposit:
An electronic transfer of funds into a bank account. Note: Pay1Day.com uses direct deposit to
transfer loan funds into your account.
- Direct Payday Lenders:
A lender who approves, underwrites, funds, and services payday loans. Pay1Day.com is a direct
- Electronic Funds Transfer (EFT):
The movement of funds from one financial institution account to another, done
- Finance Charge:
The total cost of credit including fees and interest.
- Interest Rate:
The cost of a loan over a specific period of time expressed as an interest rate.
- No Credit Check Payday Loans:
Acquiring a payday loan without requiring a review of a person's credit report as part of the
qualifying criteria. Note: Pay1Day.com does offer No Credit Check Payday Loans.
- No Fax Payday Loans:
Acquiring a payday loan without needing faxed in documents, such as bank account statements
and employment pay stubs as part of the usual qualifying criteria. Note: Pay1Day.com does offer No Fax
Payday Loans in most cases.
- No Teletrack Payday Loans:
Acquiring a payday loan without the lender requiring a teletrack report as part of the
- Online Payday Loans:
Online Payday Loans are payday loans that can be acquired online through a use of an online
payday loan application. Note: Pay1Day.com is a direct lender specializing in online payday loans.
- Payday Advance:
Synonymous with payday loans and paycheck advances.
- Payday Lenders:
Payday lenders provide consumers credit, borrowed against their future-dated paychecks with
direct payday lenders underwriting, funding, and servicing the loan.
- Payday Loans:
Payday loans is a short term loan borrowed against a future-dated paycheck.
- Payday Loan Application:
An application used to apply for a payday loan.
- Payday Loan Approval:
The decision on whether or not a payday loan application was approved, usually granted by the
direct payday lender.
- Payday Loan Balance:
The oustanding owed amount of a payday loan.
- Payday Loan Calculator:
A calculator used to figure out the interest rate, APR, and cost of borrowing a payday
- Payday Loan Fees:
The cost of borrowing a payday loan expressed as a dollar amount.
- Payday Loan Payment:
A payment used towards paying down the balance of a payday loan.
- Payday Loan Principal:
The original loan amount of a payday loan.
- Payday Loan Rollover:
The outsanding balance on a payday loan that is not repaid on its due date and then carried
over to a new term.
- Payday Loan States:
States where a payday loan can be borrowed.
- Payday Loan Terms:
A loan agreement including the conditions and repayment time period of which a borrower is
expected to fulfill.
- Unsecured Loans:
A loan that does not require collateral backing. Payday loans are considered unsecured loans
whereas a mortgage is a secured loan.
- Wire Transfer:
A transfer of funds electronically between bank accounts.