Loans Terms
We’ve dedicated this page to giving you insight on some of the loan terms you may hear about and what they actually mean. As it can be very easy to get lost in a maze of technical terms when looking to take out a loan.
Adverse credit
A term used by lenders to define and classify consumers with less-than-perfect credit histories when being considered for a loan. Having adverse credit can make it difficult to get a loan.
At Simple Personal Loans, we offer a range of loans including ones catering to bad credit. We specialise in helping people no matter their credit history. We have an obligation to responsible lending.
See also: Bad credit
APR
The Annual Percentage Rate (APR) is an indication of the amount of interest and other fees you will pay over the course of a year.
The rate of APR on a loan agreement is dependent on individual circumstances: if you suffer from adverse or bad credit history, your APR will probably be higher than someone with a clean credit history.
Bad credit
Another term used to describe adverse credit or poor credit. Some reasons for bad credit include late payments, missing payments, and bankruptcy.
If you have a bad credit history, Simple Personal Loans could help you to arrange a loan.
See also: Poor credit
Credit score
A credit score is a three-digit number that summarises how well someone has handled debt. The higher the number, the better. Your credit score will be calculated using the information available on your credit history.
If you have a lower credit score, you might be seen as high risk by lenders when applying for a loan.
Debt consolidation
Debt Consolidation loans are a way to bring all your existing payments into one monthly payment. This could make your payments more manageable and means you won’t be juggling debt.
Eligibility criteria
The eligibility requirements demanded by the lender or broker. Simple Personal Loans eligibility criteria requirements to qualify for a loan include being a resident of the UK, over the age of 18 and have a stable regular income.
Financial broker
A finance broker specialises in arranging loans. This can allow lenders and brokers more flexibility in their approach to lending.
As financial brokers, Simple Personal Loans will find the most appropriate loan plan for you and process your application with the minimum of fuss – leaving you with the simple task of deciding how to spend the money.
Loan terms
This is the length of time that you choose to pay your loan over.
Monthly Repayments
The amount paid on a monthly basis to the lender in order to pay off a loan and interest.
Personal loans
A personal loan is a loan in which a lender agrees to lend you money, and you agree to pay it back in fixed monthly instalments. Simple Personal Loans offers personal loans from £1,000 to £35,000.
Poor credit
Poor credit usually means you have a bad credit score, perhaps caused by missed payments. You can apply for a Simple Personal Loans loan no matter your credit history.
Repayment Schedule
An agreement detailing how, and over what time period, a borrower will repay a loan.
Secured loan
A secured loan is a loan in which your home is used as ‘security’ against missed payments. If you fail to repay the loan the lender could take possession of your home and sell it to recoup the debt.
Unsecured loan
An unsecured loan is a loan that doesn’t require using items as security. The maximum an individual can borrow from Simple Personal Loans in this way is £35,000.