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Applying for a loan can be a disconcerting process. To help you get started, lender specialists at First Check Cash Advance in Chillicothe, OH, explain a few of the major terms you should understand before applying for a loan.

What Terms Should You Know Before Applying for a Loan?

Asset

This is anything of value owned by you, the borrower, to be used as collateral by the lender. A fixed asset represents anything tangible you own, such as a house or property.

LoansSecured & Unsecured Loan

A secured loan is one that is connected to collateral. The most common forms of this are a mortgage or a car loan; failure to pay these loans means you could lose your house or car. An unsecured loan, such as a student or credit card, is one that is not connected to collateral. This means, if you miss a payment, the lender can’t remove any collateral from you.

Interest-Only Payments

This is when you, the borrower, don't pay the principal loan off right away but, instead, pay down the interest first. Usually, this is a set rate paid at monthly intervals, and these early payments tend to be much lower than the subsequent ones.

Balloon Payment

This is the final payment made on your loan, due at the end of your term, that covers your remaining balance. Balloon payments tend to be at least double the cost of your regular interval payments.

First Check Cash Advance provides workable and immediate solutions to your budget issues. Whether you need payday advances, title loans, or low-interest installment options, their representatives will work tirelessly to help you get the money you need. They understand that things can crop up unexpectedly, and they strive to offer a variety of flexible, risk-free services to help to alleviate some of the stress. To speak with a representative today, call (740) 779-9093, or visit them online to view the list of services they can offer you.

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