Novice borrowers will likely find themselves dealing with unfamiliar jargon. While the experience can be overwhelming, you need to understand them. Doing so will ensure that you can make an informed decision when applying for an easy bad credit loan London Ontario. Here are four essential terms you must know:
Loan Terms to Add to Your Vocabulary
- Annual Percentage Rate: Also called the APR, it refers to the yearly cost of your loan. It includes all the fees associated with your loan (ex. origination, closing, documentation) so it gives you a more accurate understanding of how much is your loan.
- Collateral: This is an asset you put up to assist you in securing a loan. It could be anything the lender can liquidate if you can’t return the money. In the case of an auto finance bad credit loan, you’ll be pledging your car.
- Cosigner/ Co-Borrower: The two terms refer to people who will share legal responsibility for the debt with you. A cosigner will guarantee the loan if you’re not qualified. However, you are primarily responsible for it. A co-borrower will share the loan with you and help with the payments.
- Credit Score: Banks and lending companies use this score to determine your creditworthiness. A high score means you’re a low-risk lender and can be given lower interest rates. It also gives you access to better rental choices or discounts to key services (ex. telecoms).
Get You More Money Than the Competition
Premier Loans Canada will provide you with the help you need when you need it. The company offers loans as high as $100,000. They have the lowest interest rates and monthly payments around. Their fast approval process means you can get the money you need within the day. Sign up on their website or call their toll-free number at 1-855-965-1650.
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