Understanding the terminology in your financing agreement is critical before signing. This glossary covers every term you'll encounter when researching or applying for PayTomorrow financing.
Waterfall Financing
A multi-lender routing system where a consumer's application flows through prioritized lender tiers — from prime to lease-to-own — stopping when an approval is found.
Installment Loan
A fixed-rate, fixed-term loan repaid in equal monthly payments over a set period (12–48 months for PayTomorrow). APR is locked from day one.
Lease-to-Own (LTO)
A rent-to-own arrangement where the financing provider purchases the item and leases it to the consumer with a purchase option at the end of the term.
APR (Annual Percentage Rate)
The true annual cost of a loan, including interest and required fees, expressed as a percentage. Use APR — not monthly payment — to compare financing offers.
Soft Credit Inquiry
A credit check that does NOT affect your credit score. PayTomorrow uses a soft pull at the pre-qualification stage to show available offers.
Hard Credit Inquiry
A credit check that DOES appear on your credit report and may temporarily lower your score by 5–10 points. Occurs only when you formally accept a PayTomorrow loan offer.
Early Payoff
Paying off your remaining loan balance before the scheduled end date. PayTomorrow installment loans typically have no prepayment penalty — early payoff saves all remaining interest.
Prime Borrower
A consumer with a credit score of 720 or above. Prime borrowers receive PayTomorrow's lowest APR installment loans from top-tier lenders.
Subprime Borrower
A consumer with a credit score of 580–619. Subprime borrowers may receive standard installment loans or lease-to-own products through PayTomorrow's waterfall.
Deferred Interest
A trap common with store credit cards: 0% APR for a promotional period, but if the balance is not paid in full by deadline, all accrued interest is charged retroactively. PayTomorrow installment loans do NOT use deferred interest.
Amortization
The process of paying off a loan through scheduled payments. PayTomorrow installment loans are fully amortized — each payment covers both principal and interest so the balance reaches $0 at the end of the term.
PCI SAQ D
Payment Card Industry Self-Assessment Questionnaire D — one of the most comprehensive PCI compliance certifications. PayTomorrow holds PCI SAQ D, meaning your payment data enters via iframe and never touches merchant systems.
ISO 27001
An international standard for information security management. PayTomorrow is ISO 27001 certified, the highest available information security benchmark.
Adverse Action Notice
A written notice required by law when a lender declines a credit application. It explains the specific reasons for denial and which credit bureau was used.
Credit Utilization
The ratio of your current credit card balance to your credit limit. Below 30% is recommended; below 10% is optimal. This factor affects 30% of your FICO score.
FICO Score
The most widely used credit scoring model in the US, ranging from 300–850. Most PayTomorrow installment lenders reference FICO scores for underwriting decisions.
