Personal Loan Glossary
A plain-English guide to the terms you'll see when applying for a personal loan or comparing lenders. Educational content from FundSnappy. FundSnappy is not a lender.
APR (Annual Percentage Rate)
The yearly cost of a loan, including interest and certain fees, expressed as a percentage.
APR helps you compare loans on an apples-to-apples basis because it reflects more than just the simple interest rate — it also includes finance charges and certain fees required by the lender. Under the federal Truth in Lending Act, lenders must disclose APR before you accept a loan.
Cash Advance
A short-term loan or credit-card feature that lets you access cash quickly, usually at a higher cost than a regular loan.
A cash advance can refer to either (1) a short-term consumer loan you repay on your next payday, or (2) borrowing cash against your credit card's available limit. Personal loans matched through FundSnappy are not credit-card cash advances — they are installment loans with disclosed APR and a fixed monthly payment.
Credit Inquiry
When a lender or company checks your credit report. Can be a 'soft' or 'hard' inquiry.
A soft inquiry (e.g. checking your own credit, or a pre-qualification) does not affect your credit score. A hard inquiry (e.g. when you formally apply for credit) may temporarily lower your score by a few points. Submitting a request through FundSnappy itself does not affect your credit score; if a lender wants to make an offer, they will disclose any credit inquiry before you accept.
Direct Deposit
Funds sent electronically into your checking account via the ACH network.
Most lenders in FundSnappy's network deposit approved loan funds directly into the checking account you provide on your application. ACH transfers typically post the next business day, though some banks make funds available faster.
FICO Score
A credit score model used by most U.S. lenders, ranging from 300 to 850.
FICO scores are calculated from your credit report and used by lenders to predict credit risk. FundSnappy accepts requests from all FICO ranges — even applicants with lower scores may be matched with a lender who works with their credit profile.
Installment Loan
A loan with a fixed amount you repay in equal monthly payments over a set period.
Installment loans have a clear start and end date, a fixed monthly payment, and a known total cost. They are different from revolving credit (like a credit card) and from single-payment short-term loans. Loans matched through FundSnappy are typically installment loans with terms from 3 to 36 months.
Lead Generator
A company that connects consumers with potential lenders, but does not lend money itself.
FundSnappy is a lead generator operated by Pixel-Motive LLC. We do not make credit decisions, set rates, or issue loans. We forward your application to our network of lending partners, who decide whether to make you an offer. We are paid by the lenders, not by you — our service is free to consumers.
Military Lending Act (MLA)
A federal law that limits the cost of consumer credit extended to active-duty service members and their dependents.
Under the MLA, the Military Annual Percentage Rate (MAPR) on most consumer credit to covered borrowers is capped at 36%. If you are an active-duty service member or a covered dependent, you may have additional protections. Always review any loan offer carefully.
Origination Fee
A one-time fee charged by some lenders to process a new loan, often deducted from the loan proceeds.
Origination fees vary by lender. Some lenders in FundSnappy's network do not charge origination fees, while others do. Any origination fee will be included in the APR disclosed to you before you accept the loan.
Payday Loan
A small, short-term loan typically due on the borrower's next payday.
Traditional storefront payday loans often have very high APRs and short repayment terms. The personal loans matched through FundSnappy are typically installment loans with longer repayment terms (3–36 months) and disclosed APR ranges from 5.99% to 35.99% for qualified borrowers.
Personal Loan
An unsecured installment loan that can be used for almost any personal purpose.
Personal loans don't require collateral. They are issued based on your income, employment, banking history, and credit profile. The lender pays you a lump sum, and you repay it in fixed monthly installments over a set term.
Prequalification
An informal estimate of whether you may qualify for a loan, usually based on a soft credit inquiry.
Prequalification is not a guaranteed offer. Some lenders in FundSnappy's network may prequalify your request before deciding to make a formal offer. A formal application and hard credit inquiry may still be required before final approval.
Routing Number / Account Number
Two numbers printed on the bottom of a check that identify your bank and your specific account.
The 9-digit routing number identifies your bank. The account number identifies your specific checking account. Lenders need both to deposit your funds and (if you authorize it) to debit your monthly payment.
Secured vs. Unsecured Loan
Secured loans require collateral; unsecured loans do not.
A secured loan (like an auto title loan or mortgage) is backed by an asset the lender can repossess if you default. An unsecured loan (like the personal loans matched through FundSnappy) is backed only by your promise to pay — no collateral required.
Truth in Lending Act (TILA)
A federal law that requires lenders to clearly disclose loan terms, including APR and total cost, before you sign.
Under TILA and Regulation Z, any lender who extends consumer credit must give you a written disclosure of the APR, finance charge, amount financed, and total payments. Always read this disclosure before accepting a loan.
Last updated: 2026-04-22.