Financial Glossary

Understanding Finance Made Simple

Finance and taxes can sound complicated — but they don’t have to be.
This quick glossary explains common financial terms you’ll encounter when working with McIntosh Finance.
Use it as a reference whenever you need clarity.

A

APR (Annual Percentage Rate)
The total yearly cost of borrowing, including interest and any fees. It’s the best way to compare loan offers.

Amortization
The process of gradually paying off a loan through scheduled installments over time.

Application Fee
A small, one-time fee that may be charged to process a loan application.

C

Collateral
An asset (like a car or property) that you pledge to secure a loan. If the loan isn’t repaid, the lender may claim the collateral.

Credit Score
A three-digit number that represents your creditworthiness. The higher your score, the better your chances of loan approval.

Credit Report
A detailed record of your borrowing history including loans, credit cards, and payment behavior maintained by credit bureaus.

D

Default
When a borrower fails to make loan payments as agreed, it can lead to possible penalties or repossession of collateral.

Down Payment
An upfront payment made toward the total cost of a purchase, such as a car loan.

I

Installment Loan
A loan that is repaid over a set period through regular payments (installments), often with fixed amounts.

Interest Rate
The percentage charged by a lender for borrowing money, calculated on the loan’s principal amount.

L

Loan Term
The length of time you have to repay your loan typically ranges from a few months to several years.

Loan Agreement
A written contract that outlines all loan terms, including repayment schedule, rates, and borrower obligations.

Late Fee
A charge is applied when a payment is not made by its due date.

P

Principal
The original amount of money borrowed before interest or fees are added.

Prepayment
Paying off your loan (in full or in part) before the agreed-upon end date.

S

Secured Loan
A loan backed by collateral. These loans often have lower interest rates because they’re less risky for lenders.

Signature Loan (Unsecured Loan)
A loan that doesn’t require collateral. Approval is based on income and credit history.

T

Tax Refund Advance
A short-term loan that lets you receive money based on your expected tax refund before the IRS processes it.

Term
The period over which a loan is repaid.

Title Loan
A loan that uses your vehicle title as collateral.

W

Withholding
The amount automatically deducted from your paycheck for taxes, sent directly to the government.

Need More Help?

Still unsure about a financial term or your loan details?
Contact McIntosh Finance! We’ll be happy to explain anything in simple terms.
Your understanding matters to us.