Griffin Fundings
Loan paperwork gets dramatically easier once about forty terms stop being jargon. Griffin Funding collected the words that actually appear in small personal loan offers, agreements, and credit reports, defined each in plain English, and arranged them A to Z below so you can decode any document in seconds.
Definitions here describe how terms are commonly used across the lending market; your lender's agreement may apply a word more narrowly, and that document always controls. Read the three short notes below first, because a handful of these terms are misread so often that the misreadings cost real money.
How to Use This Glossary
Scan alphabetically, or keep the page open beside a loan offer and look terms up as they appear in the paperwork. Every entry stands alone, so no definition requires reading another first.
Cross-reading is where the glossary earns its keep. When an offer mentions an origination fee, check that entry, then the APR entry, and you will understand why two loans with the same interest rate can cost different amounts. Terms that commonly travel together, like delinquency, default, and charge-off, are worth reading as a chain, since they describe stages of the same slide. Griffin Funding keeps this list focused on the small-dollar market, so you will not wade through mortgage or securities vocabulary to find what a fee clause means. For questions that go beyond vocabulary, the Griffin Funding FAQ answers the practical versions of what these words only name.
The Terms Borrowers Misread Most
Four misreadings cause most borrower surprises: treating APR as the interest rate, assuming every loan has a grace period, confusing prequalification with approval, and reading deferment as forgiveness. Griffin Funding sees the fallout of all four in borrower questions constantly.
APR bundles interest plus certain fees into one yearly figure, which is why it runs higher than the bare rate and why it is the only fair way to compare personal loan offers; the rates guide unpacks that math with worked examples. Grace periods exist only where an agreement grants one, so check before assuming a few late days are free. A prequalified offer, built on a soft inquiry, is an estimate that underwriting can still change. And deferment pauses payments while interest often keeps accruing; nothing is erased. Test any confusing combination of numbers in the payment calculator and the vocabulary turns concrete fast.
Connecting Definitions to a Real Personal Loan Offer
A loan offer is just six glossary entries wearing numbers: principal, APR, loan term, origination fee, late fee, and prepayment penalty. Find those six in any agreement and you have read the heart of it.
Work through them in order. Principal tells you what you receive, minus any origination fee deducted up front. APR and term together set the payment and the total repayment. Late-fee and prepayment clauses describe the edges: what a bad month costs, and whether a good one lets you finish early for free. People searching for Griffin loans often expect legal fine print to hide the important parts, but federal disclosure rules push these exact figures into a standardized box near the top of the paperwork. Griffin Funding loans arranged through the network come from lenders bound by those same disclosure rules, so the six-entry skeleton repeats in every offer you will ever compare. Borrowers who arrive here while reading Griffin Funding reviews usually look up APR and origination fee first.
Browse the Glossary A to Z
Every definition in the Griffin Funding glossary runs two to four sentences, links where a deeper guide exists, and carries its own anchor, so you can jump straight to a term or share it.
A
ACH transfer
An electronic money movement between bank accounts over the Automated Clearing House network. Lenders use ACH both to deposit loan funds and to collect scheduled payments. Transfers process in batches, which is why timing depends on banking days and cutoffs.
Amortization
The schedule by which fixed payments retire a personal loan, with each installment split between interest and principal. Early payments carry more interest because the balance is largest then. By the final payment the balance reaches exactly zero.
APR (Annual Percentage Rate)
The yearly cost of borrowing expressed as one percentage, combining interest with certain required fees. Because it folds fees in, APR runs at or above the plain interest rate. It is the single best number for comparing personal loan offers.
Autopay
An authorization letting the lender draft each payment automatically from your bank account on the due date. Many lenders offer a small estimated rate discount for enrolling. Keep enough balance in the account, since failed drafts can trigger bank and lender fees at once.
B
Balance
The amount still owed on a loan at a given moment, including accrued interest where applicable. Each payment reduces it; interest accrues on whatever remains. Your exact payoff balance on a given day comes from the lender, not from mental math.
C
Charge-off
An accounting step where a lender writes off a severely overdue debt as unlikely to be collected, often after roughly 180 days of missed payments. The debt remains legally owed and collection can continue. A charge-off is among the heaviest negative marks on a credit report.
Co-signer
A person who signs the loan alongside the borrower and accepts full legal responsibility if payments stop. A co-signer with strong credit can improve approval odds and estimated pricing. Missed payments damage both parties' credit equally, so the role is a real commitment.
Collateral
Property a borrower pledges to back a loan, such as a vehicle or savings balance. If the loan goes unpaid, the lender can claim the collateral. Most loans in the $500 to $5,000 range skip collateral entirely and rely on the borrower's promise and credit profile.
Credit bureau
A company that compiles credit histories into reports and scores, with Equifax, Experian, and TransUnion being the three national bureaus. Lenders both pull data from bureaus during review and report your payment behavior back to them afterward.
Credit limit
The maximum a lender allows on a revolving account such as a credit card or line of credit. Installment loans have no limit in this sense; they have a fixed starting amount instead. Utilization math compares revolving balances against this ceiling.
Credit report
The detailed file a bureau keeps on your borrowing: accounts, balances, payment history, inquiries, and public records. Federal law entitles you to free copies from each national bureau. Checking your own report is a soft inquiry and never hurts your score.
Credit score
A three-digit number, commonly 300 to 850, summarizing the risk your credit report implies. Payment history and amounts owed drive most of it. Lenders pair the score with income and stability checks rather than deciding on the number alone.
Credit utilization
The share of available revolving credit you are currently using, calculated per card and overall. Keeping utilization below roughly 30% is widely considered score-friendly. Paying revolving balances down with an installment loan typically lowers utilization, which is one reason consolidation can help scores.
D
Debt consolidation
Combining several debts into one new loan with a single payment and, ideally, a lower estimated rate. A fixed personal loan used this way converts open-ended card interest into a defined payoff date. The strategy works only if the old balances stay paid off.
Debt-to-income ratio (DTI)
Your total monthly debt payments divided by gross monthly income, expressed as a percentage. Lenders use DTI to judge how much room a budget has for another payment. Lower is stronger, and reducing existing payments before applying improves the ratio directly.
Default
The formal status of a loan whose terms have been broken, usually by extended non-payment. Default exposes the borrower to collections, credit damage, and possible legal action. Agreements define exactly when delinquency hardens into default, so the timeline varies by lender.
Deferment
A lender-approved pause in required payments, often granted during hardship. Interest commonly continues accruing during the pause, so the total cost can grow. Deferment protects your payment history while it lasts, but it postpones the debt rather than reducing it.
Delinquency
The state of being late on a required payment. Minor delinquency inside the first days may cost only a late fee, while payments 30 or more days late are typically reported to credit bureaus. Prompt contact with the lender limits the damage.
Direct deposit
Electronic delivery of funds straight into a bank account, used both for paychecks and for loan disbursements. Lenders favor applicants whose income arrives by direct deposit because statements then prove both the amount and the rhythm of earnings.
F
Fixed rate
An interest rate that stays constant for the life of the loan, producing identical scheduled payments. Most small installment loans are fixed rate. The predictability makes budgeting simple: the figure you sign is the figure you pay each month.
G
Grace period
A contractually defined window after the due date during which a payment can arrive without penalty. Length varies and some agreements grant none. The term also describes the interest-free window on credit card purchases, which installment loans do not have.
H
Hard inquiry
A credit check recorded when a lender reviews your file for an actual lending decision. One hard inquiry typically trims a few score points for a short period. Expect one when you proceed with a specific lender, not when you first request matches.
I
Installment loan
A loan repaid in equal scheduled payments over a set term, as opposed to revolving credit you re-borrow continuously. A personal loan from $500 to $5,000 is the classic small installment product. Each on-time installment builds payment history.
Interest
The cost of borrowing, charged as a percentage of the outstanding balance over time. On amortizing loans, interest accrues on the remaining principal, so it shrinks as you repay. Interest differs from fees, which is why APR exists to combine them.
J
Joint application
A loan request made by two people who will share ownership of the funds and responsibility for repayment. Both credit profiles and incomes are reviewed together. Couples often apply jointly when one partner's stronger file improves the estimated terms for both.
L
Late fee
A charge assessed when a payment misses its due date, or clears any grace period, as defined in the agreement. Amounts may be flat or percentage-based, with state law capping them in many places. The agreement's fee table lists the exact trigger and amount.
Lender network
The group of independent lenders a matching service can route requests to. Griffin Funding operates this model: one form reaches many lenders, each applying its own criteria to decide whether to extend a personal loan offer. The network widens comparison without multiplying applications.
Line of credit
A revolving account letting you draw funds as needed up to a limit, repaying and re-borrowing over time. Interest accrues only on what you draw. It suits unpredictable ongoing costs, while a fixed personal loan suits a single known expense.
Loan agreement
The binding contract between borrower and lender stating the amount, APR, term, payment schedule, fees, and remedies if payments stop. Signing it, including electronically, creates the legal debt. Read the fee and prepayment clauses before signing, not after.
Loan term
The scheduled length of a loan, commonly 6 to 24 months for small personal loan amounts. Longer terms lower each payment while raising total interest. Term choice is the main lever borrowers control after the amount itself.
M
Maturity date
The date the final scheduled payment is due and the loan is contractually complete. Paying ahead of schedule moves your real finish line earlier than maturity. The date appears on the payment schedule attached to your agreement.
Minimum payment
The smallest amount a revolving account requires each cycle to stay current. Fixed installment loans work differently: the scheduled payment is the required payment. Paying only minimums on cards is the pattern consolidation loans are designed to break.
O
Origination fee
An upfront charge some lenders take for setting up a loan, often an estimated 1% to 8% of the amount. It is usually deducted from the disbursement, so you receive less than the face amount. APR math includes it, which is why APR beats the bare rate for comparisons.
P
Payoff amount
The exact total needed to close a loan on a specific day, including accrued interest through that date. It differs from the displayed balance, which may exclude interest still accruing. Request a payoff quote from the lender before sending a final payment.
Prepayment penalty
A fee some agreements charge for paying a personal loan off ahead of schedule, compensating the lender for lost interest. Many lenders in the small-dollar market charge none. Confirm the clause before signing if early payoff is part of your plan.
Principal
The core amount borrowed, before interest and fees. Interest accrues on outstanding principal, so extra payments aimed at principal shrink future interest charges. Your periodic statement shows how much of each payment reached it.
Promissory note
The signed document in which the borrower promises to repay a stated amount on stated terms. In consumer lending it typically lives inside the broader loan agreement. It is the piece of paper that makes the debt enforceable.
R
Refinancing
Replacing an existing loan with a new one, ideally at a lower estimated rate or a friendlier payment. Borrowers refinance after credit improves or rates shift. Compare the new APR and any fees against what remains on the old personal loan, not against its original terms.
Revolving credit
Credit you can use, repay, and use again up to a limit, as with credit cards and lines of credit. Balances and required payments fluctuate with usage. It contrasts with installment credit, which starts full, only shrinks, and ends on schedule.
S
Secured loan
A loan backed by collateral the lender can claim if repayment fails. Security lowers the lender's risk, which can unlock approval or better estimated pricing for bruised credit. The borrower's trade-off is putting real property on the line.
Soft inquiry
A credit check that does not affect your score, used for prequalification, background screening, and checking your own report. Matching services typically run soft inquiries to generate estimated offers. Only a lender's final underwriting usually requires the hard kind.
T
Truth in Lending Act
The federal law requiring lenders to disclose credit costs in a standard format, including APR, the financed amount, and the total of payments. Those uniform boxes near the top of loan paperwork exist because of it. The law makes honest comparison between lenders possible.
U
Underwriting
The lender's process of verifying your information and deciding whether, and on what terms, to lend. It may weigh credit data, income documents, and bank activity. Underwriting is why a final offer can differ from a prequalified estimate.
Unsecured loan
A loan backed only by your promise and credit profile, with no collateral pledged. Most small personal loan offers are unsecured. Lenders offset the extra risk through pricing, which is why rates run above secured equivalents.
V
Variable rate
An interest rate that can move with a market index over the life of the loan, changing your payment. Credit cards commonly work this way, while small installment loans are usually fixed. Always confirm which type an agreement specifies before signing.