Auto Loan Learn the Terms

Car Talk
Below are some terms you may hear when shopping for a new or used vehicle or auto loan. Some words may have more than one meaning. Only those meanings relating to this site will be used.

Definitions A - Z

GAP Insurance
GAP means Guaranteed Auto Protection or Guaranteed Asset Protection. Optional protection that pays the difference between the amount you owe on your vehicle and the amount you receive from your insurance company if the vehicle is stolen or destroyed before you have satisified your credit obligation.

Grace Period
A grace period is the time between the date of a credit card purchase and the date the company starts charging you interest, or the time period stated in a contract during which the payment is permitted beyond the due date without penalty. Example: your monthly payment is due at the begining of every month, but the grace period allows you to make a payment a few days later without being penalized. Some contracts may not have a grace period.

Gross Monthly Income
The income you earn in a month before taxes and other deductions. Under certain circumstances, it may also include rental income, self employed income, income from alimony, child support, public assistance payments, and retirement benefits.

SCAMS & FRAUD
Some Scams, Fraud, and Consumer Abuse Items in the News

Federal Laws
Major Laws That Govern Financial Institutions & Protect Individuals in Their Financial Dealings

Organizations

Fannie Mae
Freddie Mac
Ginnie Mae
Nellie Mae
Sallie Mae

Consumer Info

Consumer Tips
Credit Bureau
Credit Insurance
Credit Report
Directory of Federal Agencies
Federal Trade Commission (FTC)
Identity Theft
Predatory Lending
Repair Your Bad Credit
Truth in Lending Act
Borrowers Beware

Miscellaneous

Private Mortgage Insurance (PMI)
Prepayment Penalty

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