White Pine Lending Loan Glossary: 29 Terms Explained
Plain-English definitions of every term you'll see in a White Pine Lending loan offer or agreement.
Loan documents are full of jargon. This White Pine Lending glossary explains each term in one or two sentences, so you can read any offer with confidence. Bookmark it and keep it open when you review your Truth in Lending disclosure.
Amortization
Paying off a loan through scheduled payments that cover interest first and then principal.
Annual Percentage Rate (APR)
The yearly cost of credit including interest and most fees, disclosed under the Truth in Lending Act.
Arbitration clause
A contract term requiring disputes to be resolved by an arbitrator instead of in court; some agreements allow you to opt out within a set period.
Autopay (ACH debit)
Automatic electronic withdrawals from your checking account on each due date; you can revoke the authorization.
Credit inquiry (hard)
A credit check made when you apply for credit; it can lower your score slightly and stays on your report for two years.
Credit inquiry (soft)
A credit check that does not affect your score, such as prequalification or checking your own report.
Credit mix
The variety of account types on your report, such as installment loans and credit cards; about 10% of a FICO score.
Debt-to-income ratio (DTI)
Your monthly debt payments divided by your gross monthly income.
Default
Failure to repay a loan as agreed, which can lead to collections and credit damage.
Finance charge
The total dollar cost of credit, including interest and fees.
Fixed payment
A payment amount that stays the same for the life of the loan.
Grace period
Time after a due date during which a payment is accepted without a late fee, if your agreement provides one.
Installment loan
A loan repaid in a set number of scheduled payments, such as a White Pine Lending loan.
Late fee
A charge for a payment received after the due date or grace period.
Military Lending Act (MLA)
Federal law capping the Military APR at 36% for covered service members and dependents.
NSF / returned payment
A payment that fails because the account has insufficient funds; banks and lenders may both charge fees.
Origination fee
A one-time fee charged when a loan is funded, included in the APR.
Payday loan
A short-term loan typically due in a single payment on your next payday.
Payoff amount
The exact amount needed to close a loan on a specific date, including accrued interest.
Prepayment penalty
A fee for paying off a loan early; uncommon with installment loans.
Principal
The amount you borrow, not including interest or fees.
Refinancing
Replacing an existing loan with a new one, usually to change the rate or term.
Rollover
Extending a short-term loan by paying a fee instead of the full balance; common with payday loans.
Secured loan
A loan backed by collateral such as a car or savings account.
Total of payments
The full amount you will have paid when the loan is finished: principal plus finance charges.
Tribal lender
A lending business owned by a federally recognized Native American tribe that generally operates under tribal law.
Truth in Lending Act (TILA)
Federal law requiring clear disclosure of APR, finance charge and payment terms before you sign.
Unsecured loan
A loan that does not require collateral.
Utilization ratio
The share of your available revolving credit you are using; lower is better for your score.
Ready to check your loan options?
Request $200 to $5,000 online with White Pine Lending. It takes a few minutes, and there is no obligation to accept an offer.