Good credit score always assists an individual in borrowing an amount from the financial market for buying an automobile. But, what if an individual has poor credit score? Poor credit auto loans are available in two flavours, that is, secured and unsecured. The security in the secured poor credit auto loan is the collateral placed. On the other hand, in unsecured poor credit auto loan various documents and proofs act as security. The documents may relate to:
• Residence proof
• Employment proof
• Flow of income
• Credit worthiness
It is also true that the secured poor credit loan enables the person to avail loan on low rate of interest as compared to the interest rate in the unsecured poor credit loan. Another fact regarding secured form is that the person can borrow large amount that is less than or equals to the equity in the collateral.Bad credit can be imposed by late or irregular repayment of loan installments. This irregularity can come by sudden bankruptcy. At this stage this type of loans are very useful and can help you a lot.
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