Glossary of Loan Terms | Understanding Logbook Loans
AER | Understanding Logbook Loans
AER stands for 'Annual Equivalent Rate' and it shows the rate of interest a saver will receive over a year assuming the cash is left in the account for the full year.
AGREEMENT | Logbook Loans Glossary | Autopawn
An agreement is a decision or arrangement made between at least two groups or individuals.
APR | Logbook Loans Glossary | Autopawn
APR stands for the Annual Percentage Rate of charge. You can use it to compare different credit and loan offers.
ARREARS | Logbook Loans Glossary | Autopawn
When scheduled loan or other credit repayments are overdue, you are classed as being in arrears.
ASSETS | Understanding Logbook Loans
Anything you own which is of financial value is an asset, from cash to property and electronic goods to investments.
BOUNCED CHEQUE | Logbook Loans Glossary | Autopawn
A cheque drawn on an account with insufficient funds is said to have bounced.
Read more: BOUNCED CHEQUE | Logbook Loans Glossary | Autopawn
CAPITAL | Logbook Loans Glossary | Autopawn
Capital is often used to describe a large amount of money used for generating more wealth, such as capital invested to start a new business.
CASH ADVANCE
A short term loan unlike a mortgage which is normally spread over decades can sometimes be referred to as a 'Cash Advance'.
CASH FLOW
Cash flow is the movement of cash into or out of a business, project, or financial product. It is usually measured during a specified, finite period of time.
CCJ | Logbook Loans Glossary | Autopawn
In England and Wales (Scotland has its own legal system), County Court Judgments (CCJs) are legal decisions handed down by County Courts.
CHEQUE CASHING | Logbook Loans Glossary | Autopawn
At Autopawn, the majority of our agents, where the loans are written have a cheque cashing facility. This facility is very useful for the unbanked or those that cannot wait for a cheque to clear through the banking system. A lot of migrant workers find this a valuable service as many are unable to obtain a bank account.
Read more: CHEQUE CASHING | Logbook Loans Glossary | Autopawn
CLEARED FUNDS
Cleared funds are usually identified as cash, cheques or other financial instruments that have been deposited into a bank or investment account, and have been cleared for usage by the institution.
COMMITMENT FEE | Logbook Loans Glossary | Autopawn
Commitment fees are small fees that are charged by a lender at the time that a mortgage or other type of loan is extended to an applicant.
Read more: COMMITMENT FEE | Logbook Loans Glossary | Autopawn
CONSUMER CREDIT ACT | Logbook Loans Glossary | Autopawn
The Consumer Credit Act 1974 requires most businesses which offer goods or services on credit, or which lend money to consumers, to be licensed by the Office of Fair Trading (OFT).
Read more: CONSUMER CREDIT ACT | Logbook Loans Glossary | Autopawn
CREDIT RATING | Logbook Loans Glossary | Autopawn
A credit rating is also known as an evaluation of a potential borrower's ability to repay debt, prepared by a credit bureau at the request of the lender.
Read more: CREDIT RATING | Logbook Loans Glossary | Autopawn
DEBT | Logbook Loans Glossary | Autopawn
Debt is that which is owed. A basic loan is the simplest form of debt.
DEFAULT NOTICE
A default notice is a formal letter issued on behalf of a creditor to a borrower. A default notice declares that predetermined payments have not been paid and are now in arrears.
DOORSTEP LOAN | Logbook Loans Glossary | Autopawn
Doorstep Loans as they are sometimes referred to, are short term loans, usually for amounts between £50 - £500 that are delivered to your door and the repayments are collected in the same way.
Read more: DOORSTEP LOAN | Logbook Loans Glossary | Autopawn
EARLY REPAYMENT | Logbook Loans Glossary | Autopawn
Reducing your overall debt level as much as possible is always a good idea, and is usually recommended as part of a budgeting plan.
Read more: EARLY REPAYMENT | Logbook Loans Glossary | Autopawn
FIXED RATE INTEREST
A loan or mortgage with an interest rate that will remain at a predetermined rate for the entire term of the loan.
INTEREST | Logbook Loans Glossary | Autopawn
Interest is a fee paid on borrowed assets. It is the price paid for the use of borrowed money.
LOAN
A sum of money given from one party to another for use over a period of time. The money is paid back according to terms agreed upon by both parties, including the specified interest rates and the timeframe over which the loan will be repaid.
LOAN SHARK
A loan shark is a person or persons that offers unsecured loans at high interest rates to individuals, often backed by blackmail or threats of violence and is or are normally unregulated.
LOGBOOK LOAN | Logbook Loans Glossary | Autopawn
The definition of a logbook loan is a loan secured on car or other vehicle.
OUTSTANDING BALANCE
Amount currently owed on a Debt.
OVERDRAFT | Logbook Loans Glossary | Autopawn
Overdrafts are like a 'safety net' on your current account; they allow you to borrow up to a certain limit when there's no money in your account and can be useful to cover short term cashflow problems.
OVERPAYMENT
Overpayments can greatly reduce the amount of time to pay the loan and can greatly reduce the amount of interest charged on the outstanding balance.
PAYDAY LOAN
A payday loan can be defined as a loan or advance that is put into your bank account or provided as cash in a short time period, usually within a day. At the end of the loan term, the cash that you have borrowed as a payday loan will be withdrawn from your bank account and interest will be charged on the amount borrowed.
PERSONAL LOAN
Loans available from banks and other financial institutions to private individuals for personal use such as the purchase of a motor vehicle, holiday or similar item are personal loans. Repayment periods vary from one year to five years. No collateral is asked for or given for the loan.
REDEMPTION PENALTIES/FEE
Charges that can become the most significant is the early redemption charge or penalty. These are charges included in a loan agreement that will be levied on the customer if they wish to repay the loan early.
REPAYMENT METHOD
Most loans can be paid back weekly or monthly. Autopawn Logbook loans can be paid back by this method. The lender must be told at the point of issuing the loan.
SECURED LOAN
A secured loan is a loan where the borrower agrees to provides the lender with some form of security. In the case of secured loans in the UK, generally the security will be your property or in cases of a Logbook loan your car or mode of transport.
SHORT TERM LOAN
A loan scheduled to be repaid in less than a year.
STANDING ORDER
An order by a customer to his/her banker to pay a specified amount usually on or around a particular day of the month regularly to another account.
TRUST
Firm reliance on the integrity, ability, or character of a person. Trust is one of the most important principles behind the relationship between Autopawn and our customers.
UNCLEARED BALANCE
The amount of money in your account including all the uncleared items in your account and any items paid in during the day.
Questions :
A. Click here >
A. Click here >
A. Click here >
A. Click here >
