How Auto Loan Interest Works
Like all other types of personal loans, car loans come with interest. However, there are some differences between car loan interest and other types of interest, like home mortgage loans and credit cards. For example, most car loans charge you simple interest rather than compound interest. Car loans also use the principle of amortization, which means a greater amount of your payment goes toward paying interest at the outset of your loan. This video discusses in more detail how auto loan interest works.
If you need an auto loan, GCS Credit Union can help. Our loan advisors will work hard to help you secure a great rate on an auto loan in O’Fallon . Visit our website to see our current rates, calculate your monthly payments, or even apply for an auto loan online. If you would like to take advantage of the benefits of being a member of our credit union, call us at (618) 219-7091 to speak with us.