Glossary of Payday Loan Related Terms

Bad credit

When you have bad credit, you have a poor credit rating, and you can be turned down when you apply for credit. This is caused by making late payments, skipping payments altogether, exceeding your credit card limits or declaring bankruptcy.

Balance

The balance is the remaining amount owed.

Bankruptcy

When you declare bankruptcy, you’re legally stating that you’re unable to repay your debts. The debts are erased by the courts, but you won’t be able to get new credit for 7-10 years. Bankruptcies are recorded on your credit report.

Basis Point

One hundredth of one percent in the yield of an investment.

Beacon Score

Your beacon score is recorded on your credit report, telling creditors if you’re creditworthy. It’s determined by the amount of activity on your report, including positive factors like timely payment of loans, and negative factors like late payments. Every time you apply for credit, it’s counted as a negative on your beacon score.

Blank Check

A check that is given to loan recipients to purchase a new or used vehicle. The check is blank, which gives the loan recipient flexibility and convenience when shopping for a vehicle. The check is valid up to an agreed upon amount and there's no obligation to use the check.