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If you default, the lender can charge an APR of 36% for the first 12 months, and an APR of 18% beyond the 13th month.
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Unless the lender gives you a grace period, the credit reporting agencies will also be notified that you were late with a payment, and this information will be added to your credit report.
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Usually it is a parent, guardian, or friend that signs the loan with you.