Understanding Basic Financing Language

First-time car buyers and students newly out of school are often unfamiliar with the language involved when financing a vehicle. Following are some of the more confusing terms you may encounter.

No credit doesn't mean you can't get a loan, rather it simply means you don't have a history of repaying a loan. Bad credit is when you have a loan or a credit card and have not made on-time payments. There no real definition for good credit. It merely means you're less of a risk to the institution extending a loan. The debt-to-income ratio is the percentage of your monthly income that goes to pay money that you owe on credit cards or loans.

Don't worry if it's your first time buying a vehicle. The finance department at Tyler Chrysler Dodge Jeep Ram in Niles, MI will walk you through everything you need to know about financing your chosen vehicle.

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