Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk/en Compare our loans at AllTheLenders.org.uk

Loan Jargon buster

Loan Jargon buster

Adequate Explanations document

Before your loan application is approved, a lender must provide you with an ‘Adequate Explanations’. This document provides you with important information about your loan so you can assess whether it meets your needs and financial situation. You’ll also be provided Pre-contract Credit Information and the lender’s Terms and Conditions which you should carefully read before agreeing to your loan.


APR stands for annual percentage rate and refers to the total cost of your loan over a year. This includes the interest rate as well as any additional charges on top of the loan amount. It’s a potential way to compare the cost of borrowing from different lenders.


If your account falls into arrears it means you’ve missed or are late with a repayment. This could affect your credit score if your lender reports the missed payment to a credit reference agency. So, if you think you won’t be able to make a payment you should speak to your lender straight away.


A broker can help you in your search for a loan. They collect certain information from you and search their panel of lenders for a loan considered most suitable to your needs; they can then pass you to the lender so you can complete the application. The broker doesn't lend you any money they just act as a middleman. You could choose to apply for a loan with a direct lender or through a broker.


CCJ stands for County Court Judgment. A CCJ is a type of court order that might be registered against you if you fail to pay a lender the money you owe. Having a CCJ registered on your credit file could affect your ability to borrow in the future.

Continuous Payment Authority (CPA)

A CPA is a way of collecting regular repayments from your bank account using your debit card details rather than, for example Direct Debit. If your Direct Debit fails a lender may attempt payment by CPA (if it’s covered in their Terms and Conditions). Customers have a right to cancel a CPA at any time by contacting the lender or their bank.

Credit Reference Agencies (CRAs)

CRAs are organisations that collect information about your credit history and calculate a credit score based on this information. Lenders request this information when assessing your application for a loan. The CRAs in the UK are Experian, Equifax and TransUnion; lenders may report credit information and request it from one, two or all three.

Credit check

A credit check is the search carried out by a company to look at the information on your credit report. This could be carried out by a lender, utility provider or employer, however they must have a valid reason to do so (for example, you applied for a loan with them). It allows the company to look at your credit report and see your financial behaviour. They will either carry out a ‘soft’ or a ‘hard’ credit search.

Credit report

Your credit history or report contains all the information held by the particular credit reference agency. It includes your personal details along with a record of your credit history. You can check your credit report at the CRAs for free and correct anything if you can prove it’s wrong.

Credit score

This is a rating that is used by lenders to help them make a decision on your loan application. This score is calculated by a CRA from the information in your credit report and helps lenders understand how likely you are to make repayments. A high credit score will usually increase the chance of your application being accepted. You can check your credit score for free.

Default notice

A default notice (sometimes referred to as a Notice of Default) is usually issued by the lender after several payments have been missed. If the full amount stated on the default notice is not cleared within the set time, then the credit agreement can be cancelled and the default will be registered at the CRAs for 6 years; this could have a negative effect on your credit score and your ability to borrow in the future. The lender may also choose to apply for a CCJ against you.

Direct lender

A direct lender is the company you have your loan agreement with. They fund your loan and are responsible for collecting your repayments. Brokers may work with several lenders, to help find a loan suitable for you.

Early Settlement

An early settlement is when you repay your loan in full, earlier than the date agreed when you took out your loan. If you do this, your loan repayment amount may change and you could end up paying less interest. Some lenders may charge you a fee for this, so you should check beforehand.

Fixed interest rate

A fixed interest rate is where the interest rate on your loan won’t change for the duration of your agreed loan term. This may make your repayments easier to budget for.

Instalment loan

With an instalment loan, you will repay the loan over a set period of time in regular instalments, rather than one lump sum. This helps you spread the cost of your loan with manageable repayments.

Interest rate

This is the charge for borrowing your loan. It is worked out as a percentage of the amount of money that you borrowed. This is paid alongside the money borrowed.

Loan agreement

The loan agreement is the contract you will be sent by your loan provider containing the Terms and Conditions of your loan. By signing the loan agreement, you are agreeing to these terms. So, it’s important that you carefully read them before signing.

Open banking

Open Banking is a secure way to give financial institutions access to your financial information. For example, instead of having to send in documents, such as bank statements, Open Banking allows lenders to view this information through an application program, with your permission. To use Open Banking, providers must comply with the strict rules of the FCA.

Payday loan

A type of loan usually paid back in full the next time you get paid. If you can't, for whatever reason, you're likely to face late payment fees. These costs can make the loan even more difficult to repay.

Pre-contract credit information

The information in this document is set out in a style that makes it easier for you to compare the features of your chosen loan to others. Before you sign any contract make sure you read this document carefully.

Representative APR

The 'Representative APR' is the APR that at least 51% of customers will receive for their chosen loan. This must be displayed and stops lenders from showing a rate which only a select few customers may be eligible for.


This is the regular money paid to the lender by the borrower. You will make the agreed repayments over a set time frame, such as every week or month until your loan has been paid back in full.

Secured loan

A secured loan is where you tie the money that you borrow against an asset that you own, like your home or your car. This means if you don’t make your repayments, as a last resort your lender can use the asset to repay the loan.

Loan term

This is the period that you will have to make your loan repayments over, for example 3 months.

Unsecured loan

Unsecured loans are supported by the borrower’s creditworthiness and affordability. This means your loan isn’t borrowed against the value of something you own.

About Dot Dot Loans

Dot Dot Loans is UK based online loan provider. Our cash loans range from £200 - £4000 with fixed repayment terms of 3 to 48 months, depending on the amount that’s borrowed. 

Our loans are straightforward, allowing you to get the money you need quickly. We fund approved loans within the hour between 9am and 10pm, seven days a week. If approved after 10pm the loan will be funded at 9am the next day.

If you would like more information about a Dot Dot loan, check out our short-term or long-term loan calculators.

Did we miss anything? Let us know by sharing your tips!

More from Anissa

Hi, I’m Anissa, an author for Dot Dot. My passion for writing started from a very young age when I used to write news articles for my primary school! I love blogging and producing enjoyable content. Outside of work, my hobbies include fitness and music. I love cooking, baking, and trying new recipes. I also enjoy browsing Netflix and immersing myself into a good series. I’m here to help make your financial journey smoother with some helpful hints and tricks! I hope you enjoy reading them.

Short-term loans: 1228.67% APR Representative