When you buy a car, the dealer may offer to finance it. However, banks and credit unions usually have lower interest rates. Interest is the amount of money the lender charges for loans. Lenders spread out payments for you, but longer loans cost you more money because of the interest.

Go to your bank or credit union before you buy a car. Ask how much you can afford to borrow. They may "prequalify" you. You can also ask family and friends to suggest places to get a loan. Loan rates are listed in the Business section of the Sunday news.

To learn more about buying cars, call the Minnesota Attorney General's Office at 651-296-3353. Ask for a copy of "The Car Handbook." For general credit information, listen to INFO-U number 837, "Credit and How to Get Your Credit Report."