When it comes to car loans, you want to make smart financial decisions. However, auto finance terminology can be confusing for Lafayette, IN drivers. Here's a breakdown of some of the most common terms to know.
You've probably heard of a credit score, but you may not know exactly what it is and how it's used. Your score is determined by a number of factors, including payment history, total debt, and number of open accounts. Lenders use this number to decide whether you're a good credit risk. If you have a low credit score, you can still qualify for a loan. You might just need to get a co-signer. This is someone you trust who will agree to pay the balance if you should default or not make your payments.
Interest and annual percentage rates are numbers you'll see written in percentages. The interest is the amount your lender charges you for borrowing money. APR is the total of interest and all additional fees.
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