But not all credit is the same, and knowing the differences is an important step towards making smart financial decisions.Credit allows you to borrow another person’s money to cover expenses you can’t currently afford, while promising to pay the lender in full plus interest.
The best advice is to manage credit responsibly over time.
A lien is a legal document that grants the holder a claim to a property. It’s a way for the lender to protect itself in case you decide not to make payments.
If you don’t make your payments, the auto lender can take possession of the vehicle and sell it to .
Since most loans are closed-ended, let’s go over the various types of loans that fall under this category.
Auto loans are used to purchase a new or used vehicle.