When financing a brand new or used car purchase, you pay back in monthly installments over the loan term, which is usually a few years. However, you may not be aware of the amount of principal remaining after each payment, or what the breakdown of your monthly installments are. Knowing how your monthly payments are calculated, … Read more
Annual Percentage Rate (APR) is the cost of borrowing money, including fees, that you pay each year. Interest rate is the cost of borrowing money yearly. Both are expressed as a percentage. However, while APR includes fees or other charges such as closing costs, mortgage insurance, loan origination fees, and discount points, the interest rate … Read more
A car is a big purchase, whether buying a brand new or used one, and a car loan can soften the impact of the big dent on your wallet. While the loan can positively affect your credit, it isn’t felt immediately. So, you may wonder “how fast will a car loan raise my credit score?” Well, … Read more
Paying off your car loan early or before the full term allows you to save money, as your total interest will be lower – if your lender will allow prepayment without penalties. However, paying your car loan earlier may be difficult, but there are some things you can do to completely settle your loan ahead … Read more
Getting a car loan is a convenient way to buy your own car if you cannot afford to pay for it in cash. However, some circumstances may arise in the future that will make meeting your monthly car loan obligations difficult for you. Fortunately, there are things you can do to avoid aggravating your situation, and … Read more
Nowadays, a car is essential for personal needs like going to school and getting to work. However, getting approved for a car loan can be difficult in times of economic downturns when it can be difficult to maintain a good credit score. While qualifying for a car loan with a bad credit score may seem difficult, … Read more
A car loan is an installment loan that enables you to conveniently purchase a car. It’s a legally binding agreement between the lender and you. It stipulates that the lender will give you the funds, and you’re responsible for paying back the amount you borrowed along with interest and other charges. A car loan can help … Read more
Getting preapproval allows you to negotiate more effectively, and get the best interest rate. It helps you set a realistic budget because it tells you how much you can borrow, and at what interest rate. It is important to keep in mind that getting preapproved does not mean you can buy any car at that price. … Read more
It’s possible to sell a car with a loan, but you have to pay off the loan first. This way, the lender can release the title, so the car can be sold to the new owner without lien – whether it’s a private buyer or a dealer accepting a trade in. One way to do this … Read more
Car refinancing is basically getting a new loan to pay an existing loan. The car is used as collateral for the new loan. If you default on the new loan, the lender will repossess your car to recover the loss. The main advantage of refinancing is that it will lower your monthly payments or your … Read more