Glossary of Finance Terms

Frequently asked questions about YFD's services

Every industry has commonly used terminology & lingo, but this is especially true in the car finance industry. Here is a glossary of the terms we commonly use that will hopefully make some of the content contained in this site a bit easier to understand.

2nd Chance Loan

See Bad Credit Car Loan >


Any object that is tangible or intangible which can be owned and converted into a monetary value. Examples are: Houses, Businesses and Cars. Also note sums of money are considered to be an asset.

Bad Credit Car Loan

Bad Credit Car Loan is a loan for individuals who have a poor credit history. Having Bad credit does not necessarily mean you're excluded from being approved for an auto loan, in fact we specialise in bad credit car loans. Apply for a loan now >

Balloon Payments

A balloon repayment scheme can make your monthly payments lower on an auto loan, but a large payout figure must be made at the end of the car loan.


An additional party who shares equal responsibility for a loan.


Breach of a credit agreement, usually due to failure to meet repayment requirements of said credit agreement.


If your vehicle is valued at more than the amount owing on your loan, you are said to have positive equity on your car.

Net Income

A borrower's total income minus tax payable.


The amount owed on a vehicle loan minus the interest payable.

Poor Credit

Sometimes refered to as bad credit, poor credit is usually a result of bankruptcy, repossessions or missing payments. Poor credit does not necessarily mean you will be rejected for an auto loan. Perhaps we can still help, Apply for a loan now >

Secured Loan

A secured loan is a loan in which the borrower uses an owned asset (e.g. a car or property) as collateral for the loan. If for any reason the borrower is unable to repay the loan, the creditor will take ownership of the asset used as collateral and may sell it to regain some or the entire amount owed to the lender.

Term Of Loan

The length of time from the beginning of a loan contract to the end to when the loan has been repaid in full.

Unsecured Loan

An unsecured loan, also known as a Personal Loan, is a loan in which the loan is based upon a borrower's credit rating and history as opposed to their assets (See secured loan)

VIN (Vehicle Identification Number)

A VIN, is a unique code & serial number, used to identify individual motor vehicles, motorcycles, and various other types of vehicles.

Do you qualify?

  • Are you at least 18?

    By law you must be over 18 to apply for a loan.
    Start an application now >

  • Are you a permanant Australian resident?

    To qualify you will need to hold an Australian Citizenship .

  • Do you have a steady income?

    To be a successful applicant, you will need to have a steady regular source of income.

  • Acceptable Proof of Identity?

    To receive final approval, you will need to verify your identity along with verification of any other documentation you provide us.

Bad Credit Finance

Poor Credit History? Perhaps we can help

If you have a poor credit history and are looking to rebuild your credit score, we can give you a hand. YFD is a bad credit car loans specialist, and we understand that a persons circumstances change. Just because you've had a problem in the past doesn't mean you should be prevented from borrowing today