Money Jargon Buster – What does it all mean?

Money Jargon Buster

There are so many words used when applying for credit, that we have put together a money jargon buster blog. This blog will help you to understand what some of the common financial words mean and make applying for credit less scary.


Money jargon buster – APR. This is short for Annual Percentage Rate, and is the annual rate of interest you will be charged for the loan. It includes the interest you pay and any other charges, such as admin fees.

Representative APR

Money jargon buster – Representative APR. This is what organisations have to show on advertising and commercials and it refers to the rate that at least 51% of people who are accepted for the product will pay. Some customers may receive a different APR depending on their credit rating and circumstances.


Money jargon buster – Arrears. If you are in arrears it means you have fallen behind with repayments for money you owe.


Money jargon buster – Consolidate. A consolidation loan is a loan you can take out which replaces all your outstanding debt into one weekly/monthly repayment. Outstanding debt may include credit cards, loan repayments or household bills. A consolidation loan can make your debt more manageable. 


Money jargon buster – CCJ’S. Also known as a County Court Judgement, these are issued to you if you fail to repay a loan or an outstanding debt or fine.

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Continuous Payment Authority (CPA)

Money jargon buster – CPA. This is where you give a company permission to regularly take cash from you. Rather than taking your bank account number and sort code, they will ask you for the long number across your debit or credit card. This allows them to take a payment whenever one is due.

Credit Score

Money jargon buster – Credit score. Your credit rating is used by banks and lenders to estimate your risk potential and how likely you are to pay a loan back. Your credit report/ history includes the last 6 years and tells them about your past borrowing and repayments which affects their decision when lending money.


Money jargon buster – Creditor. A person or company that gives you credit by allowing you to borrow money. This then must be repaid in the future.

Debt Management

Money jargon buster – Debt management. If you are in debt management you are on a repayment scheme offered by a debt management company. They will negotiate your repayments with your creditor to make them more affordable and achievable for you.

Income and Expenditure

Money jargon buster – I&E. To see if you can afford to take out a loan, companies will often perform an income and expenditure check. This shows how much cash you have coming in each month and how much you spend. The amount you have left shows if you can afford a loan.

Interest rate

Money jargon buster – Interest rate. This is the percentage at which interest is charged on your loan. Depending on the type of loan, this may be Fixed or Variable. Fixed means the interest rate will not change during the life of the loan, Variable may change.

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