The world of personal finance can sometimes seem to have a language all of its own, and it can be difficult to seperate the wheat from the chaff when comparing products such as loans. With all things financial, it’s vital to have a good understanding of what you’re agreeing to before you sign on the dotted line, and so here we explain some of the most common terms you’re likely to come across in loan advertisements, application forms, and credit agreements.
– APR
This stands for Annual Perentage Rate, and is basically the cost of the loan. As well taking into account the interest rate you pay, it includes any fees or charges you need to pay. For example, if two loan packages have identical interest rates, but one charges a setting up fee, then that loan will have a higher APR.
– Sub Prime
This is the industry term for applications from people with less than perfect credit ratings. Sub Prime credit is also referred to as adverse credit, and people with poor credit ratings may struggle to get an approval, and even then they’re almost certain to be charged a higher rate of interest.
– Advance
This...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
