Common types of
An open car loan is a type of loan that approves you for a certain credit limit and gives you the ability to borrow up to that limit. While open-ended credit is common with home equity loans and credit cards, it's rarely used with car loans. If you can find an open car loan, consider yourself lucky.
A closed-end loan is often an installment loan in which the loan is issued for a specific amount that is repaid in installment payments on a set schedule. An example of this is an auto loan. An open-end loan is a revolving line of credit issued by a lender or financial institution.
A typical auto loan is called a “closed-end loan” in the banking world, and it must be classified as a loss and charged off after 120 days of nonpayment.
"Paid," or "paid in full," is the term applied to installment accounts, like car loans, after the last payment is made and you have completed repayment of the loan as agreed. Since you can't use the account for anything else, once a loan is paid in full, it is essentially closed.
Will I go to Jail If I Hide my Car From the Repo Man? If your lender has received a court order compelling you to turn over the vehicle, then yes, you could go to jail if you disobey the court (often called “contempt of court”).
Your car loan lender is required to send you written notice of your right to reinstate, which will include the amount necessary to bring the loan current. The reinstatement amount is usually only good for a specified amount of time, typically 15 days from the notice date.
Definition of 'open-ended loan'
An open-ended loan is an extension of credit where money can be borrowed when you need it, and paid back on an ongoing basis, such as a credit card. An open-ended loan, such as a credit card account or line of credit, does not have a definite term or end date.
Examples of closed-end loans include a home mortgage loan, a car loan, or a loan for appliances.
Open-end credit is not restricted to a specific use. Credit card accounts, home equity lines of credit (HELOC), and debit cards are all common examples of open-end credit (though some, like the HELOC, have finite payback periods).
An open-ended loan is a loan that does not have a definite end date. Examples of open-ended loans include lines of credit and credit cards. The terms of open-ended loans may be based on an individual's credit score.
For example, an auto loan is a type of closed-end credit that must be used to purchase an auto. A personal loan, by comparison, is closed-end credit that you can use however you like.
Closed-end credit is a loan or type of credit where the funds are dispersed in full when the loan closes and must be paid back, including interest and finance charges, by a specific date. Many financial institutions also refer to closed-end credit as "installment loans" or "secured loans."
Bank financing
The primary benefit of going directly to your bank or credit bank is that you will likely receive lower interest rates. Dealers tend to have higher interest rates so financing through a bank or credit union can offer much more competitive rates.
Closing Debt means the outstanding principal amount of, accrued and unpaid interest on, and other payment obligations (including any prepayment premiums, breakage costs and other related fees or liabilities payable on the Closing Date as a result of the prepayment thereof or the consummation of the transactions ...
When a car loan is charged off, you're still responsible for repaying the debt. Once a lender has charged off an auto loan, it often means you will have to deal with a third-party collection agency — and worse, your car can be repossessed, or you could be sued for repayment.
The “closing” is the last step in buying and financing a home. The "closing,” also called “settlement,” is when you and all the other parties in a mortgage loan transaction sign the necessary documents. After signing these documents, you become responsible for the mortgage loan.
Hiding Your Car From the Repo Company
Typically, recovery companies attempt to find your car for up to 30 days. Some borrowers attempt to keep their car in a locked garage during the search, which is one of the only places where a recovery company can't take your vehicle from.
Enter the Repo Man
This involves using online databases to find evasive debtors. Occasionally, they use some old-fashioned detective work in the form of door knocking or phone calling. They might even use informants — an estranged spouse looking to get even, for example — who tell repo men where to find a car.
So, the repo agent can't use, or threaten to use, force or violence. It can't break locks or destroy or damage property in attempting to reach the car. If the repo agent breaks into your garage to take the truck, that is breaching the peace.
For hidden cars and even for some vehicles parked at great distances from a subject's typical haunts, a repo agent might use an electronic detector to track down a vehicle for repossession. These days, many lenders require that all new vehicles be equipped with such devices.
The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus. This means a couple of things: The scores we provide are actual credit scores pulled from two of the major consumer credit bureaus, not just estimates of your credit rating.
An auto loan could be missing from your credit report because the information hasn't yet been reported to the credit bureaus, your lender doesn't report to all credit bureaus or an error has occurred.