The prospect of getting an auto loan can be intimidating. At Suncoast Porsche, we understand that the terms and jargon used in lending are often confusing. So we've put together a brief summary of some finance terms you should know.
You may be familiar with credit scores, but do you know how your score is calculated? A credit score is a number lenders use to decide whether to give you a loan. It's determined by looking at things like your payment history and how many accounts you have open. You might need a co-signer if your score is low. This is a person who will agree to pay the loan if you are unable to.
Your credit score is one factor used to determine your interest rate. This is the amount finance institutions charge customers for borrowing money. It's shown as a percentage. Another percentage to know is the annual percentage rate, or APR. This is the total of interest and all fees.