Annual percentage rate (APR):

The yearly interest rate on the loan is called annual percentage rate.  APR represent the real cost on the loan and is the best way of comparing the cost of loan from various lenders.

Bad credit:

A loan lending term used to describe poor credit or credit risk. A lender uses bad credit to decide whether or not to extend loan to a borrower depending on the credit score.

Refinance:

Refinance is the process of replacing existing loans with new loans at new rates and terms. The current loan is repaid from the proceeds of new refinanced loan. Typically refinance loan is at lower interest rate.

Bankruptcy:

It is a legal declaration which states that a person or company is unable to repay their debts. Bankruptcy is considered last resort and has negative effect on the borrower s credit history.

Credit check:

A check made by the lender to see whether or not you have a record of you repayments on various loans and other financial commitments.

Guarantor:

Someone who agrees to take full responsibility of repaying your loan and is held responsible in case of default.

Main driver:

A car insurance term for the person who uses the vehicle most.

Loan term: