Glossary
APR
The APR or Annual Percentage Rate calculates the interest rate payable over the whole term of the loan.
Base Rate
The base rate is the lowest rate at which a lender will charge interest on a secured loan. It is set by the Bank Of England’s Monetary Committee. The UK’s current base rate is 5.5%.
CCJ
A CCJ or County Court Judgement is issued against an individual for failure to pay an outstanding debt. This will be held on file and adversely affects your credit rating.
Credit rating
A credit rating is a points based rating system used by financial institutions such as banks, mortgage and loan companies, to assess an individual or companies credit worthiness and risk. This is based on a credit report compiled by credit reference agencies using both public records such as the electoral roll, court judgements and bankruptcies and financial records from lenders and other financial institutions.
Debt Consolidation
Debt consolidation loans allow you to combine all your outstanding debts into one loan in order to reduce monthly payments to one manageable sum. Consolidating debts can be used to eliminate the high interest on credit card debts allowing you to become debt free much quicker.
Interest Rate
This is the percentage rate at which interest is charged on a loan. The interest rate will vary according to the type of loan and the base rate set by the Bank of England.
