Loan Glossary

Application:
Means the form or online form you use to apply for a payday loan.

Assets:
Anything of value that can be used as security to receive a loan e.g. car, boat, house.

Budgeting:
Is a tool to that is used to balance your money every day. Budgets are also helpful for saving money to achieve a short or long term goal.

Conditionally approved:
Means that, based on the information you have provided, you have been conditionally approved for a loan. However, you still need to provide proof which needs to be faxed or posted to the loan provider.

Credit card:
Is a card that is given by your loan provider with a certain limit of money that must be paid back. You may take the credit card to an atm to draw out money or use it in stores to make purchases.

Credit check:
Is a check loan providers do through Veda advantage. The check finds out how many loans you have, any loans you have defaulted on and if you are bankrupt, it also can tell how many loans you have applied for even if you have been rejected.

Declined:
Means that after filling in the application, you have not met the loan provider's criteria, in some way. This could be earnings, length of service at your job, length of stay at your current address, insufficient contact details, or they don't think that you can pay off the loan, based on the information you have provided.

Debt collection agency:
If you are running behind on your loan and the loan provider can't get in contact with you, the may refer your account to a debt collection agency. The collection agency will be able to perform searches to get in contact with you, Dept collection agencies are usually the last step before legal action.

Garnish:
Is an order from a judge in a court to take a certain amount out of you wage or salary to pay back a dept.

Interest:
Is a charge that loans providers charges on top of the amount that is lent to you. Interest can be charged daily, weekly, monthly or yearly.

Interest free:
Is a period of grace that loan providers give you to be able to pay the account without being charged any extras.

Lending criteria:
Is the minimum requirements used by loan providers to all clients to assess whether the client has the means or intention to pay the money back.

Loan:
Is a contract between a customer and a loan provider, where the loan provider gives a certain amount of money to the customer with rules on how money is to be paid at regular intervals to the loan provider to pay it back.

Proof of identity:
Is having evidence as to who you are and where you live, such as drivers license, passport, bills, medicare card, rates notice etc.