Loan terms in plain English.
The total yearly cost of borrowing, including interest and most fees, expressed as a percentage. APR lets you compare loan offers on a single number, regardless of length or structure. Required to be disclosed by the Truth in Lending Act.
The form a borrower fills out to request a loan. With Perks Loans, the initial application happens in the app — once you're matched, the lender may require an additional application of their own.
The lender's decision to issue a loan, based on their underwriting criteria. Being matched with a lender through Perks Loans does not guarantee approval.
The person taking out a loan. In Perks Loans, that's you.
A second person who agrees to repay a loan if the primary borrower can't. Many personal loans don't require a cosigner, but some lenders allow one.
A check of your credit history performed by a lender or service. Two types: soft (doesn't affect your credit score) and hard (may temporarily lower your score by a few points). Perks Loans uses only soft pulls during matching.
The percentage of your monthly income that goes toward debt payments. Lenders use it to assess whether you can afford additional debt.
Failing to repay a loan according to its terms. Default has serious consequences, including damage to your credit score, collections action, and potentially court proceedings.
The transfer of loan funds from the lender to the borrower. Typically arrives by direct deposit within 1–5 business days of approval.
The requirements you must meet to apply for or receive a loan. Perks Loans has baseline eligibility for matching; each lender has its own additional criteria.
An interest rate that stays the same for the life of the loan. Most personal loans in our network are fixed-rate.
How long it takes for loan money to arrive in your account after approval. Usually 1–5 business days, though some lenders offer faster funding.
A credit check that may temporarily lower your credit score, usually by a few points. Performed when you formally apply for credit with a lender. Not used by Perks Loans during matching.
A loan repaid in fixed regular payments over a set period. Personal loans are installment loans.
A fee charged by the lender when a scheduled payment is missed. Set by the lender, not by Perks Loans.
The company that issues the loan, sets its terms, and collects payments. In Perks Loans, lenders are independent businesses in our network — not us.
The legally binding contract between you and the lender. It specifies the loan amount, APR, fees, repayment schedule, and your obligations. Read it in full before signing.
The length of time you have to repay the loan, usually expressed in months. Loans matched through Perks Loans range from 70 days to 36 months.
A service that connects borrowers with potential lenders, but doesn't itself issue loans. Perks Loans is a matching service.
A one-time fee charged by some lenders for processing the loan. Often deducted from the disbursed amount. Typically 1%–8% of the loan principal.
A loan used for personal expenses, usually unsecured (no collateral required). Most loans matched through Perks Loans are personal loans.
Paying off a loan early — partially or in full — before its scheduled end date.
A fee charged by some lenders if you repay the loan early. Most lenders in our network do not charge prepayment penalties, but always check the loan agreement.
The original amount borrowed, not including interest or fees.
The plan that specifies when and how much you pay back. For most loans in our network, payments are monthly and fixed.
A fee the lender charges if a scheduled payment fails — for example, due to insufficient funds in your account.
A loan backed by collateral, such as a car or property. If you default, the lender can take the collateral. Loans matched through Perks Loans are unsecured.
A credit check that doesn't affect your credit score. Used for pre-qualification and matching. Perks Loans uses only soft inquiries.
U.S. federal law that requires lenders to disclose loan terms clearly — including APR, fees, and total cost — before a borrower signs. Lenders in our network are TILA-compliant.
The lender's process of evaluating a loan application and deciding whether to approve it, and on what terms.
A loan that doesn't require collateral. Most personal loans, including those in our network, are unsecured.
