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Auto Loans

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What is an APR?
APR stands for "Annual Percentage Rate." It is the interest rate on a debt expressed as a yearly rate (rather than a monthly one, for example). The APR was created to make it easier to compare credit offers. Credit cards often have several different APRs -- one for purchases, one for cash advanc ...
Will a car lease lower my FICO score more than a car loan?
The assumption in this question is that car loans and leases always lower your FICO credit scores, which isn’t necessarily the case. In fact, if you pay your car loan on time every month, it's likely that your car loan is actually helping your credit scores since a car loan diversifies yo ...
What is an insurance risk score?
Insurance companies use insurance risk scores to determine whether or not they will issue insurance policies to consumers, the policy premiums, and how likely it is that consumers will file an insurance claim. So, in sum, this score determines your insurance risk. Insurance companies have determ ...
What is a credit reporting agency?
Credit reporting agencies (CRAs), also known as credit bureaus, compile and maintain records of your credit history from credit card companies, banks, mortgage companies, and other lending institutions. They use this information to create your credit reports. The information in your credit repor ...
How do I get my ex spouse’s name off my car loan and title?
You’ll need to refinance the auto loan into your own name to get your ex-spouse off of the loan. In essence, you’ll be buying the car from your ex-spouse. The spouse who is responsible for the car loan payments should be the one to assume credit liability. It’s a really good id ...
What is a prepayment penalty?
A prepayment penalty is a fee that a lender charges a borrower who pays off his or her loan before the end of its scheduled term. Prepayment penalties are not charged by most standard lenders. Subprime borrowers should review the terms of their loan offers carefully to see if this fee is include ...
What is a car lease buy out?
Auto lease buy out or lease pay off are the same thing and just another type of auto financing. It is the option the leasing customer has either before or at the end of the lease to purchase a vehicle instead of returning it back to the dealership. There are two types of lease buyouts: Lease end ...
What is auto loan refinance?
Auto loan refinance allows you to replace your existing car loan with a new one. Normally you would do it to lower your interest rate, extend the term, and lower your overall monthly payment. Occasionally people may also refinance their cars to add or remove another person to or from the title. ...
What is a person to person car loan?
A person-to-person car loan, or buying from an individual auto loan, is financing for a car that you want to purchase directly from a another person and not a dealership. Normally to qualify for a person-to-person loan you must have good credit history and income. Please review the minimum requi ...
How do I get out of an upside down car loan?
If your loan amount on your car is more than the car’s value, or if you think your car payment is too high, you can apply to refinance your auto loan. Even if you have less-than-perfect credit you can qualify for a refinance – you just can’t have a bankruptcy, repossession, or ...
I want to buy a new car. What should I do about financing?
Research outside financing before you go into a dealership. Credit unions usually offer the lowest-price auto loans for which consumers qualify, and outside financing reduces the confusing paperwork shuffle that can conceal fraud at the time of purchase. Compare your outside loan offer against ...
What is an upside down car loan?
When you are “upside-down” on your auto loan, your loan amount is more than the value of the car. If you are financing a new car purchase with an auto loan, standard depreciation means that you’ll likely be instantly upside-down on your loan. This is because new cars usually lo ...
Why do people refinance car loans?
There are two main reasons why people refinance auto loans: 1) To lower the interest rate they are paying and 2) to reduce the monthly payment amount. You may be able to do both when you refinance. Keep in mind that there are costs associated with refinancing car loans. Usually you need to owe a ...
How do I modify my car loan?
It's possible that your loan company will modify your existing car loan, specifically by extending your loan term, lowering the payment for several months, etc. You can call the lender to discuss your options, especially if you have recently had a hardship such as a job loss or divorce. Please b ...
How do I get a car loan if I have bad credit?
There are car loan options for borrowers less-than-perfect credit. You can qualify for auto loans even with a repossession, foreclosure, or bankruptcy record on your credit file. Before you do so, do your homework and read up about your options when you refinance. Because auto loans are “s ...
I cosigned an auto loan for another person. This person is defaulting on the loan and I want to refinance this vehicle. Can I do it?
Auto refinancing is the process of replacing an existing loan and with another. Normally you would refinance to lower your interest rate, extend the term, and/or lower your overall monthly payment. And specifically related to this example, sometimes people refinance their cars to add or remove a ...
How do I get a great deal on my next car?
Choosing the right type of car and financing is not easy nowadays. These five easy steps will help you get a great deal and enjoy your shopping experience. Step 1: Seriously consider buying a previously owned/used car. The saying is true that the moment you drive off the lot in a brand new car y ...
What are private party auto loan requirements?
In addition to standard dealership financing, Credit.com also offers private party auto loans. You may want to choose a private party loan if you are buying a used car from another individual instead or from a dealer. These prequalification requirements apply for private party financing: Amount ...
What can I do to increase the chances of loan or credit card approval?
To increase your chances of loan approvals in the future, we recommend that you pay your bills on time, use your accounts responsibly, keep your credit card balances low, and remove negative inaccuracies from your credit reports. If you do not already have a credit card, you can build your credi ...
If I cosign for my friend will it lower my chances of obtaining a loan?
Strictly speaking, no. The fact that you are a cosigner in and of itself does not necessarily lower your chances of obtaining a loan in the future. However, even if the cosigned account is paid on time, the debt may affect your credit scores and revolving utilization, which could affect your abi ...