Amortization
It is the process of reimbursing a loan through small repayments payable monthly or quarterly.

Annual Percentage Rate (APR)
APR is the combined figure which depicts rate of interest and other charges which are included in the loan.

Collateral
Collateral is used to back the loan repayment. In the even of non payment of the loan, the collateral will be repossessed.

Cosigner
Cosigner is a person who agrees to underwrite the borrower’s liability in case he is not able to pay the auto loan.

Credit Bureau
Credit bureau keeps trace of all credit transactions undertaken by a person. They are also known as credit reference agency.

Credit History
Credit reference agencies maintain a list of all credit transactions of a borrower. The effect of the report is known as credit history.

Default
Any arrears in payment of debts are known as defaults. One of the instances of bad credit history is default.