The Mercedes-Benz of Medford team gets lots of questions. Some of the most common have to do with the financing process. In particular, finance terminology can be confusing. Here are some common terms to know.
Your credit score is one of the first items a lending institution will look at when considering you for a car loan. This number is determined by factors such as how much debt you have, the number of accounts you currently have open, and your past payment history. You might need someone to sign the loan with you and agree to make payments in the event that you can't. This person is a co-signer.
Your credit score will influence the interest rate you're charged as a percentage of the original loan you're charged when you borrow money. A poor score could lead to a higher rate of interest. The annual percentage rate, or APR, is the amount of interest plus the other fees that come with the loan.
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