The Porsche Cincinnati Kings team often gets asked about auto financing. Understanding the terminology used when getting a car loan can be a real challenge. That's why we've put together a summary of important auto finance terms you should know.
Do you know your credit score? This number is used by lenders to determine your creditworthiness. Your past payment habits, how many accounts you have, and your total debt are some of the factors that go into calculating your score. If you have a low credit rating, don't despair. You could qualify for a loan with a co-signer. This person agrees to be responsible for your debt if you are unable to make the payments.
Your credit score is also important to lenders because they use it to decide on an interest rate. Interest is a percentage that's charged by institutions in addition to the original loan balance. A separate rate is APR. Annual percentage rate combines the total of interest and the fees associated with your loan.