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Dan Pfeiffer Used Cars & Quick Lane Tire & Auto Center
Sales: (616) 583-0184
Service: (616) 583-0161
8250 Pfeiffer Farms Dr SW Byron Center, MI 49315
All About Auto Financing
Automotive Finance Dictionary
Keeping track of terms used when trying to finance a car is known to cause headaches. While it’s much easier to let the finance department take care of the financing, knowing the lingo is still helpful. You don’t need to know every term in the automotive finance dictionary to keep up. Knowing a few of the main terms can go a long way!
Auto Equity Loan – Better known as a title loan, the lender will take your car’s title as equity until you repay your loan. Once the car is paid off, the title is returned to you and you own the car outright.
Credit History – Plain and simple, this is a record of how likely you are to repay your loan. Late payments, outstanding debt, and bankruptcy are a few of the major things that will lower your credit score.
Credit Score – Like your credit history, this is the same thing but in number form. Generally speaking, credit scores above 720 receive the best interest rates on loans as it signifies a reliable borrower. To increase your credit score, repay debts on time and don’t open credit accounts you don’t need.
Creditor – Also known as a lender, they’re the ones lending you the money that you will have to repay in order to get your car title.