Understanding all the language used when discussing a loan is important. If you want to receive a fair and low costly loan for your new Nissan you should make yourself familiar with some of the terms used for credit. Louisiana Nissan dealer in gretna offers the basic list of credit related terms below. These terms should cover most of the terms you will encounter when discussing your loan for your new Nissan.


Interest Rate
The amount of interest charged on a monthly loan payment, usually expressed as a percentage.


Interest
The fee charged for borrowing money.


APR
Annual percentage rate, the interest you pay per year for a loan.


Credit Report
Your credit report is a detailed history of your entire past credit history. It has everything from the time period in which you made your payments, to any outstanding balances you might have, to how many credit accounts you have. All of these factors affect your credit score.


Credit Score
Your credit score is a simple definition of your credit. Anything 720 is considered excellent, and anything below 620 is considered poor.


Default
When you don’t make your required payment, or if you obstruct the terms of your loan agreement.


Asset
Anything owned by an individual that has a cash value. This includes property, goods, savings or investments.


Bad Credit
A term used to describe a poor credit rating. Common practices that can damage a credit rating include making late payments, skipping payments, exceeding card limits or declaring bankruptcy. "Bad Credit" can result in being denied credit.


Balloon Payment
A large extra payment that may be charged at the end of a loan or lease.


Buydown
A lump sum payment made to the creditor by the borrower or by a third party to reduce the amount of some or all of the consumer's periodic payments to repay the indebtedness.


Collateral
Property that is offered to secure a loan or other credit and that becomes subject to seizure on default. (Also called security.)


Cosigner
Another person who signs for a loan and assumes equal liability for it.


Credit History
A record of how a person has borrowed and repaid debts.


Graduated Payment
Repayment terms calling for gradual increases in the payments on a closed-end obligation.


Variable Rate
A variable rate agreement, as distinguished from a fixed rate agreement, calls for an interest rate that may fluctuate over the life of the loan. The rate is often tied to an index that reflects changes in market rates of interest. A fluctuation in the rate causes changes in either the payments or the length of the loan term. Limits are often placed on the degree to which the interest rate or the payments can vary.


Credit Bureau
An agency responsible for gathering and monitoring credit information. There are three main credit bureaus in the United States: Experian, Trans Union and Equifax.


Louisiana Nissan dealer in gretna hopes this list of credit terms aids you in acquiring a loan for your new or used Nissan.