Reprise Financial 101

Reprise Resources

Money. It’s a big part of our daily lives, yet often, we don’t understand the basics behind it. We’re here to help you learn more. It’s our goal to provide you with the most useful tips and resources to help you make the best financial decisions possible. That’s why we offer Reprise Financial 101.
Starting with the basics of financial knowledge will help you get informed, get organized, and get the resources you need to achieve optimal financial health.

Session 1: The Basic Definitions

Even though many of us have often heard of these terms, sometimes it helps to have a refresher on the basic meanings of these words associated with borrowing money.

Personal Loan

A personal loan is money borrowed from a lender that is paid back in fixed monthly payments or installments with interest.

Interest Rates

Interest rates are the cost a borrower pays to a lender for borrowing money to finance the loan, on top of the loan amount or principal balance. Interest rates are based on various factors including an applicant’s credit history. The interest rate is also used to calculate the amount of interest assessed daily on your principal loan balance.

APR

The annual percentage rate, or APR, is the interest rate plus additional fees charged by the lender. This includes origination fees and other fees charged when the loan is made. The APR is also known as the annual cost of borrowing money expressed as a percentage.

Principle Balance

The principal balance is the total amount you have borrowed and have to pay back. The principal balance will decrease as you make on-time payments on your loan.

Origination Fees

Origination fees are what the lender has charged the borrower for making a loan. Origination fee amounts may vary depending on the state where you live but are usually assessed as a flat fee or a percentage of your loan amount.

Variable Interest Rate

A variable interest rate is not fixed and can fluctuate over the term of a loan. Reprise offers a fixed rate so that there isn’t any question on what your rate will be.

Collateral

Collateral is property, such as a vehicle, that you own and use to secure a personal loan. Collateral is required on secured personal loans but not on unsecured personal loans.

Credit Score

A credit score is a prediction of credit behavior, such as how likely a borrower is to pay back a loan on time, based on information from a credit report. Several factors from your credit report are used to determine a credit score, including bill paying history; current unpaid debt;
the number and type of loans; how long a credit account has been open; how much available credit is being used; new credit applications; and whether there is a presence of serious delinquency such as foreclosure or bankruptcy. Credit scores are expressed as a numerical rating on a scale of 300 to 850. Lenders usually use credit scores to determine how likely a
borrower is to pay back a loan.

Prepayment Penalty

A prepayment penalty is a fee that some lenders charge if you pay off all of your loan early. Reprise Financial never charges a prepayment penalty!

Our Trusted Partners

We are Trustpilot Certified