Amortization
Calculates the loan payment including interest on the outstanding balance to be paid off at the end of a fixed period.

Credit Scoring System
A statistical system used to rate credit applicants according to various characteristics relevant to creditworthiness.

Creditworthiness
Is termed as past and future ability to repay debts.

Default
Is defined as failure to repay a loan or otherwise meet the terms of your credit agreement.

Down Payment
A cash payment or trade-in that reduces the amount of the purchase price and amount the buyer must finance.

Equity       
The residual value of a business or property beyond any mortgage thereon and liability therein

Fixed Rate Financing
Fixed rate financing is a method where borrower gets to pay rate of interest charged at a stable rate of interest.

Interest
The cost of borrowing money, usually expressed as a percentage.

Term
Is the length of the auto loan that is usually 24, 36, 48 or 60 months.

Title
Is defined as the right of ownership of a vehicle.

Variable Rate Financing
Variable rate financing is a situation where the interest rate on auto loan fluctuates along with the base rate in the financial market.