Captive Finance Company :
A separate company owned by an auto manufacturer to finance product sales. Examples include General Motors Acceptance Corporation (GMAC) and Ford Motor Credit Corporation (FMCC).
Certificate of Title :
Is evidence of vehicle ownership issued by the Department of Motor Vehicles when it has confirmed said ownership. There is a fee to receive one based on state, taxes and other possible registration fees.
Cloud (On Title) :
An outstanding claim which negatively affects the marketability of title.
Property offered to support a loan that can be seized if you default on your payments. Car and/or a house would be a good example.
When a real estate agent or broker finds and completes a sale, that individual is paid money by the seller for those services rendered.
An agreement, often in writing, between a lender and a borrower to loan money at a future date subject to the stated conditions.
Compound Interest :
An interest method that calculates interest on interest earned in prior periods.
Another person who signs your loan and assumes equal responsibility for it. This usually comes into play when the original person applying for the loan does not have enough credit to take on the responsibility themselves.
Reputation for solvency and integrity entitling a person to be trusted in buying goods or borrowing money.
Credit Bureau :
An agency that keeps your credit record.
Credit History :
The record of how you've borrowed and repaid debts.
Credit Scoring System :
A statistical system used to rate credit applicants according to various characteristics relevant to creditworthiness.
Credit Ratio :
The ratio, expressed as a percentage, which results when a borrower's monthly payment obligation on long-term debts is divided by his or her net income (FHA/VA loans) or gross monthly income (Conventional loans). See Housing Expenses-to-Income Ratio.
Past and future ability to repay debts.