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Question by Kim: Do universal default clause apply to auto/car loan? If I get a auto loan, would the lender raise rates if we?
go default on mortgage? We are going thru short sale/foreclosure situation and stopped paying mortgage for a month now. Would a car loan lender raise rates based on our mortgage default? Or is the loan rate fixed for the terms of the loan?
Best answer:
Answer by bdancer222
Only credit cards have universal default clauses. If you are late paying the mortgage or car loan, the credit card company might just kick in the universal default. But your mortgage and car loans are installment loans with set interest (or at least rules for adjustable rate increase) that don’t include universal default clauses.
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