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Word Index


An agreement usually refers to a Credit Contract that is made when two or more people, or groups of people, create a contract to manage the terms of a loan. It sets out everything the law requires to be covered when a lender provides a loan to a consumer. When the borrower signs the agreement, they are then responsible to fulfil the terms of the contract, such as making repayments on time. Before signing an agreement, you should make sure you understand what you are getting in to.

Application Fee

The application fee refers to amount of money a loan company charges to borrower to set up the loan. It’s usually added to the loan so you don’t pay this amount up front


Arrears is the amount of money overdue if a borrower does not make their repayments on time. It is the amount of money needed to “catch-up” if payments are missed. Often extra costs are incurred on loans that are in arrears, such as penalty fees and interest. Credit ratings are also affected by being in arrears and this may a hindrance to getting loans in the future.

Bad Credit Loans

Bad credit loans is a term used by people who are trying to borrow money and they have a low credit rating. They use this term in an online search to find a lender who may be willing to lend them money, in spite of their past bad credit

Cash Advance

A cash advance is the amount of money paid to the borrower when they take out a loan. It’s also referred to as a cash loan. These days it’s usually the amount deposited in the borrower’s bank account and not given out as cash in the hand.

Cash Advance Online

A Cash advance online is when a borrower applies and receives a loan using a website to submit an application. It means there is no need to physically visit the lender to get the loan.

Cash Loan

A cash loan is also known as a Cash Advance. Mostly they are short-term loans and for small amounts, usually a few hundred dollars paid back over a few weeks. Generally there is no physical cash involved – the transactions are online into the borrower’s bank account

Costs or Charges

Costs or charges are the amount the lender asks the borrower to pay to cover the cost of providing the loan. These are usually added to the loan at the start so the borrower knows exactly how much need to be repaid. However, some charges such as default fees or penalties can be added of the borrower does not comply with the conditions on the Credit Contract.

Credit Check

This is a check by the lender to assess your credit worthiness. Several organisations collect loan and bill payment history from many organisations and then record any defaults. A good credit rating will have no missed payments and vice versa

Credit Contract

A Credit Contract is an agreement between two or more people, or groups of people, to manage the terms of a loan. It sets out everything the law requires to be covered when a lender provides a loan to a consumer. When the borrower signs the credit contract, they are then responsible to fulfil the terms, such as making repayments on time. Before signing a credit contract, you should make sure you understand everything or ask the lender to explain. New Zealand law requires example credit contracts be displayed on every lender’s website and at their premises.

Credit Limit

A credit limit refers to the maximum amount of money a person can borrow. The credit limit is set by the credit lender and often is based on the borrower’s income and expenditure – that is, the lender’s assessment of the borrower’s ability to repay the loans

Credit Rating

A credit rating is prepared by some organisations to determine if you are a good person to loan money to. A credit rating is calculated by looking at your financial history, how you have borrowed, how much you own and other relevant financial information. Lenders take your credit rating into account when processing a loan application. A person with a good credit rating is more likely to have their loan application approved and get a loan at a lower interest rate. Conversely, people with a low credit rating can end up with higher interest rate loans and may even be declined.

Credit Bureau

Organisations that collect financial history about you are called Credit Bureaus. They then sell this information to lenders when you give the lender permission to make an inquiry, This process by the lender is called a Credit Check. The main credit bureaus in New Zealand are Centrix, Equifax (Veda) and Dun & Bradstreet


Debt refers to the amount of money you owe to other people or organisations.

Direct Debit

A direct debt occurs when an agreed amount of money is deducted from your bank account on a specific date following an instruction from the organisation you need to pay. Typically used to pay bills. It’s managed by the organisation who you owe money to, as opposed to an automatic payment which you manage.

Disclosure Statement

The disclosure statement usually forms part of a credit contract and details all the costs, repayment amounts and other important information about the terms of the loan. It is a legal requirement for lenders to provide a disclosure statement for every loan to a consumer

Early Repayment

Early repayment is when you repay a loan before the due date on the credit contract. By law, you can pay off your loan early. Some lenders charge a fee to repay early. Acorn Finance, the credit provider for Cash Relief does not charge any fees for early repayment – in fact, they welcome early payments.

Fast Cash Loan

This is the same as a fast loan

Fast Loan

These usually refer to loans that are provided quickly by the lender and are typically for small amounts. They are also known as Payday Loans.


These are the costs or charges added to the loan by the lender to cover the costs of providing a loan

Fixed Interest Rate

A fixed interest rate is the rate of interest of interest which does not change for the term of the loan

Instant Loan

Typically, this is a small cash loan provided very quickly. It’s not actually instant, it just means the money is available in a matter on hours or even minutes. Sometimes referred to as Payday Loans.

Instant Finance

The same as an instant loan

Interest Rate

The interest rate is the percentage over a period of time that determines how much interest you pay when borrowing money or the amount you receive when saving money. Loans from Acorn Finance have a fixed interest rate for the term of the loan

Loan Application

This is the process you go through when asking for a loan. These days it’s nearly always done online. You submit information about yourself and the lender assesses this information and decides whether to approve or decline your loan application


A loan is an amount of money which has been borrowed. It must be repaid along with the charges and interest on an agreed repayment schedule.

Loan Calculator

A loan calculator is an online tool to estimate how much the loan repayments are likely to be over time for a given loan amount

Loan Period

The loan period is also known as the loan term. It is the period time from when the money is borrowed until full repayment of the loan amount, interest and fees.

Online Loan

Online loan is the same as online short term loans or payday loans

Online Short Term Loan

An online short term loan is a loan of which needs to be paid back in a few weeks. The application, submission, consent and repayment is all online

Payday Advance

A payday advance, which is also known as payday loan or cash advance, is a small loan that can be got quickly and easily. Normally you get this loan to help you through to your next pay but it can also be taken out for a longer period.

Payday Loans

A payday loan is used when you need a small amount of money quickly and have no other options. It is usually paid back over the next few weeks.

Penalty Charges

Penalty charges are costs that are incurred if the terms of the credit contract are broken. For example, missed payment or default fees.

Privacy Waiver

A privacy waiver is a document you sign or consent to which allows a company to make inquiries about you and pass on your personal details to other specified organisation for this purpose. It also gives your permission to a lender to maintain information about you

Privacy Waiver and Consent

A privacy waiver and consent documents is the same as the privacy waiver. It is a formal way for you to give permission to an organisation to make inquiries about you and to retain your personal details on file. It may give permission for a credit check to be carried out.

Quick Cash Loan

Quick Cash loan is the same as a fast loan

Responsible Lending

It’s a legal requirement in New Zealand for a lender to make sufficient inquires about a borrower to make sure the loan is right for them. This is the essence of responsible lending. It also means the lender must be convinced the borrower can meet the required repayments without financial hardship. Click on link for more details.

Same Day Loans

Same day loans is a small, short-term cash loan provided to the borrower on the same day as they applied. Often there is a small charge to ensure the loan is expedited. You can get same day loans from Cash Relief

Secured Loan

Secured loans are those where some form of security is provided by the borrower, such as a vehicle, house, land etc. This will allow the lender to repossess the item provided for security if the borrower doesn’t keep up to date with payments.

Short Term Loan

Short term loans are exactly that. The amount borrowed, plus fees and interest, must be repaid within a short period, usually less than 10 weeks. However, the term or period can vary from lender to lender. You can get a short term loan from Cash Relief.

Small Cash Loan

Small cash loan is another name for cash advance or payday loan. Typically, loan amounts are under $1000 and must be repaid within a few months.


Term refers to the length of the loan, between when the loan is taken out and when all the payments are completed

Total Amount Payable

Total amount payable is the total amount of a loan to be repaid. It includes the loan amount, interest and fees. It is also known as the unpaid balance.

Unsecured Loan

Unsecured loans are offered by some lenders where the borrower does not need to sign over any collateral or assets which could be claimed if the borrower does not make the payments as agreed. Usually unsecured loans are offered at higher interest rates to cover the higher risk taken by the lender. However, if the payments are not up to date, the lender can still charge penalties and extra interest.


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