Improving your credit score starts by developing good financial habits. The first step in getting into the groove of better financial habits starts with knowing the basics. Here are a few common financial terms to know to set you on the right track! If you have any lingering financial questions about the car-buying process, we're here at Crown Kia of Longview in Longview, TX are more than happy to help.
The ability to borrow money. Those who have good credit are more likely to be approved for a loan. Borrowers with bad credit might still be approved for the loan, but will see several stipulations that protect the lender.
Annual Percentage Rate, is what it costs each year to borrow money from a lender. Essentially, this is the interest rate on the loan, as well as any extra fees. A higher APR means borrowers will pay more as long as the loan is active.
Is what the lender charges for the use of their money. Typically, interest rates are expressed as a percentage of the loan.
Means borrowing money in order pay for the vehicle outright. Borrowers will then pay the money back over the duration of a set contract. While the borrower repays the loan, the lender owns the vehicle and holds the title. The title is given to the borrower once the loan has been repaid in full.