Car Loan Glossary For Consumers |
Understanding car loan financial terms can be confusing.
Use this glossary of common car loan terms. |
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Business Days :
The period of time during a given work week that a company considers
itself open, national holidays and weekends are usually not considered
business days. Feel free to make an Inquiries at the company your working
with to find out what days it counts as business days under the Truth
in Lending and Electronic Fund Transfer Acts.
Certificate of Title :
Is evidence of vehicle ownership issued by the Department of Motor
Vehicles when it has confirmed said ownership. There is a fee to receive
one based on state, taxes and other possible registration fees.
Closing :
The meeting between the buyer, seller and lender where the property
and funds legally change hands. Also called settlement.
Cloud (On Title) :
An outstanding claim which negatively affects the marketability of
title.
Collateral :
Property offered to support a loan that can be seized if you default
on your payments. Car and/or a house would be a good example.
Commission :
When a real estate agent or broker finds and completes a sale, that
individual is paid money by the seller for those services rendered.
Commitment :
An agreement, often in writing, between a lender and a borrower to
loan money at a future date subject to the stated conditions.
Cosigner :
Another person who signs your loan and assumes equal responsibility
for it. This usually comes into play when the original person applying
for the loan does not have enough credit to take on the responsibility
themselves.
Credit :
Reputation for solvency and integrity entitling a person to be trusted
in buying goods or borrowing money.
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