Annual Percentage Rate (APR):

The rate of your loan, expressed as an annual rate.


An acronym for Automated Clearing House. ACH payments are payments that are automatically debited from your bank account. You’ll need to provide authorization in order for any institution to take ACH payments from your account.

Bad Credit:

A commonly used term to describe the track record of a credit consumer who often does not fulfill their loan payment obligations. A borrower’s failure to keep up with credit agreements/loan payments may signal to a lender that the borrower may encounter challenges paying off future loans.

Billing Cycle:

The interval (often measured in days) between the dates of regular periodic statements.

Business Day:

A business day includes every official working day of the week. Public holidays and weekends (for many businesses) are not considered business days.


Security offered by the borrower, to help guarantee repayment of a loan to a lender. If a borrower stops making payments towards a loan, the lender may seize the collateral to help recover the outstanding balance of the loan.


A legal arrangement between a borrower (You) and lender (Yes Finance), in which the lender extends money to the borrower. Details of this arrangement are found in the contract (loan agreement) between the borrower and the lender, which explains how much and how often the borrower will pay back the lender.

Credit Bureau:

A company that collects and compiles information regarding consumers’ credit history. Typically, lenders will review the consumer’s credit report from the credit bureau to assess the consumer’s ability to repay debts.

Credit Check:

Credit checks are a tool often used by direct lenders to assess a consumer’s creditworthiness as part of the loan approval process. Credit is checked by pulling information regarding a consumer’s Credit History from sources such as Credit Bureaus.

Credit History:

A record of a consumer’s payment behavior as demonstrated through historic data. Typically, Lenders obtain an understanding of a consumer’s Credit History by reviewing the consumer’s Credit Report to assess the consumer’s likelihood of repaying their debt(s).

Credit Score:

A number which aims to represent a consumer’s creditworthiness, usually based off of their credit history. Credit scores are often used by lenders to evaluate a consumer’s ability to make their payments on-time. Higher credit scores are typically (but not always) better than lower credit scores.

Credit Report:

A record of a consumer’s credit history, including but not limited to a consumer’s bill payment history, amounts of past loans, current debt owed to lenders, and other financial information. A credit report may include information from a number of sources such as banks, credit card companies, collection agencies, and governments. Some lenders may use credit reports to decide whether to extend credit to a consumer and may use the information to determine what interest rate they will charge.


The failure of a borrower to meet make a timely payment to their lender. (e.g. If the borrower is a week behind on their payments, then the borrower has defaulted on their loan).


A borrower’s account is delinquent whenever the borrow is late in paying back their borrowed funds and/or is unable to make any payments.

Direct Deposit:

The movement of funds from one bank account directly to another bank account. Lenders will often provide funds to borrowers using direct deposit.

Daily Periodic Rate:

In the context of short-term lending, the daily periodic rate is the amount of interest and/or fees that is charged on a loan on any given day.

FICO Scale:

A FICO score is a type of credit score created by the Fair Isaac Corporation. FICO scores are a popular credit assessment tool used by lenders, to determine individual’s creditworthiness. Most FICO scores range from a low of 300 to a high of 850; with higher score equating to better creditworthiness.

Finance Charge:

The cost of credit expressed as a dollar amount.

Good Standing:

Opposite to Delinquent (see above), a borrower’s account is in Good Standing when the borrower has successfully met to the terms and conditions of their loan, most notably by making on-time payments. Some lenders may consider only those accounts that have never been delinquent to be in good standing, while others may consider an account to be in good standing so long as any past delinquencies have been corrected (i.e. if a borrower is not currently behind on any payments).

Installment Loan:

A loan that is repaid through a series of regular, pre-scheduled payments over a period of time.

Installment Payment:

A payment made by a borrower to a lender, on an Installment Loan. The amounts of installment payments will vary. Factors that will affect the size of the payment include: how often payments are made, the interest rate and how much Principal (see below) is borrowed from the lender.


An amount charged by a lender for the use of the funds borrowed. Interest is typically calculated by multiplying an Interest Rate by the Principal amount of a loan.

Interest Rate:

The percentage of principal charged by the lender for borrowing the money, typically expressed as a percentage.


The company that extends credit to a creditworthy borrowers, based on terms (interest rates, fees, and duration) that both the lender and borrower agree to within a loan contract.

Line of Credit (LOC):

A line of credit is a preset amount of money that a lender has agreed to extend to a borrower. A borrower may draw from the line of credit when they need it, up to the maximum amount. Interest is only paid on the amount that is borrowed. Yes Finance LLC does not currently offer Line of Credit loans.


A sum of money that is borrowed from a lender, typically expected to be paid back with interest.

Loan Agreement:

A legally-binding document which details the terms and conditions of a loan.

Loan Term:

The period between the effective date of a loan and the last scheduled payment date.

Outstanding Balance:

The unpaid balance on a debt.

Outstanding Principal Balance:

The amount of money a borrower owes on their debt, excluding any interest, fees, and/or other finance charges.

Payday Loan:

A short-term loan that is designed to repaid in full, using the borrower’s next paycheck. This type of loan is typically for a relatively small amount of money, usually $1,000 or less, and is often used by consumers who need immediate access to money. Payday loans often come with a higher interest rate than longer-term loans. Yes Finance LLC does not offer payday loans.

Payment Schedule:

A timetable defining the amount and timing of required payments under a loan agreement.

Personal Loan:

A loan intended for a consumer’s personal use. Though most personal loans are unsecured, if a borrower requests a large amount of funds, a lender may require the borrower to provide collateral to secure the loan.

Power of Attorney:

A legal document that gives another person the legal authority to act on a person’s behalf (often in a limited capacity).


The total amount borrowed on a loan, in which interest is typically calculated against.

Principal Payment:

A payment toward the amount of principal owed.

Secured Loan:

A loan that requires a borrower to provide collateral to a lender as a condition of the loan. In the event that the borrower stops making payments, the lender can attempt to recover the amount owed by the borrower by making a claim against the collateral.

Secure Socket Layer (SSL):

A type of data encryption that helps ensure all information transferred between web servers and networks remains secure. SSL encryption, and its successor Transport Layer Security (TLS) is a standard security technology used by millions of websites to protect consumers’ personal information.

Truth in Lending Act (TILA):

A federal law created to promote the informed use of credit by consumers. TILA requires Yes Finance to disclose our terms and costs of credit to all borrowers in a clear, consistent manner, to help borrowers evaluate the costs associated with our credit products.


A term used to refer to the population of consumers who do not have an account at a bank or other mainstream financial institution. A portion of the unbanked do not qualify for traditional products/services from mainstream financial institutions while others choose to remain unbanked because of the costs and paper work involved with banking through traditional financial institutions. The unbanked are likely to pay for products/services using cash or money orders. Where they require access to financial services/products, many of the unbanked will rely on alternative financial services such as check-cashing services which tend to charge high rates for their services.

Unsecured Loan:

A loan that is not secured by collateral. This means that the loan is approved on the basis of the borrower’s ability to repay. An unsecured loan is not guaranteed by any type of property, so the lender may be left with nothing if the borrower defaults. These loans pose a larger credit risk to the lender and therefore typically have higher interest rates than secured loans.

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