loans
7 pieces tagged loans.
Principal, explained
The actual amount you borrowed to buy your car, before interest, fees, or any other charges get added.
APR vs interest rate
The interest rate is the cost of borrowing; APR includes fees and shows the true annual cost.
Hard pull vs soft pull
A soft pull checks your credit without affecting your score; a hard pull creates an inquiry that can lower it.
Loan-to-value (LTV)
LTV is the ratio of your loan balance to your car's current market value, expressed as a percentage.
Payoff quote, explained
The exact amount required to own your financed car outright, including interest accrued through a specific payoff date.
Prepayment penalty
A fee some lenders charge if you pay off your auto loan early or refinance before a set date.
Simple vs precomputed interest
Two methods for calculating loan interest that determine whether paying off your loan early actually saves you money.