Loan Glossary

Adjustable Interest Rate - An interest rate on a loan that can be changed through out the term of the loan. Several factors such as the contract and the current market determine changes.
Auto Loans - Loans provided to individuals looking to either purchase a new or used car.
Assets - Items an individual owns that can be used as collateral.
Bad Credit Loans - Loans provided to people who have less than perfect or bad credit ratings.
Capital - All the money and property a business uses to transact business.
Collateral - Assets that are put up in a loan agreement to secure the payment of a loan.
Credit Score - The number between 450-850 that is determined by your current credit status. The larger the number the better your credit. The three major credit reporting agencies determine this number.
Debt Consolidation - The combination of several debts into one single debt. This is done to reduce interest payments and get debts paid faster.
Interest Rate - The rate charged based on a percentage of the principal of the loan.
Fixed Interest Rate - An interest rate that does not change throughout the term of a loan.
Home Equity Loans - A loan taken against the value of your home that is more than the debt currently owned for that home.
Mortgages - A contract between a lender and borrower that guarantees payment of a loan debt.
Personal Loans - A loan with no collateral that is based on a person's debt, credit history, and income
Principal - The amount owed for a loan not including interest or other fees.
Student Loans - A loan provided to a college student that is used to cover any of the costs of a college education.