Auto Loans Bad Credit - Now people with bad credits can also get the auto loans
Posted by Michael Ronald at 2:53 AM
Having a car is a necessity these days. People with poor credit score find it difficult to apply for loans. Auto loans bad credit is designed for these people and they can buy their own car with the help of these loans. These loans are available in secured and unsecured option. For unsecured option, there is no need to place any collateral. Secured loans need securities placed against the loan amount.
The loan amount for these loans depends on the price of the car. If the car is used, the loan amount is less than the new car. It depends on the borrowers repaying ability and choice of the car The rate of interest of secured option varies from 6% to 11% and the unsecured loan option varies fro 14% to 18%. If you down pay a bigger amount, the interest rate is lowered for the borrowers.
The repayment term of Bad Credit Auto Loans depends on the loan types. Secured loans have longer repayment time. Unsecured loans have shorter period of time to repay the loans. Generally the loan term for these loans varies from 48 weeks to 60 weeks.If the borrowers can arrange a co-signer with good credit score, then the loan rates can be lowered for the borrowers. These loans are offered to the people whose credit score is below 600. These loans are approved on the basis of the borrowers repaying ability.
Auto loans bad credit is offered by the banks and financial institutes, there are some individual lenders who offer these loans. It is better to compare the different loan rates and get the best deal. Online lenders also offer these loans. Online calculators can help the borrowers with the calculations of the loan features.
Carney Alden is a Masters in Accounting and Financial Management from
Source: http://www.goarticles.com/cgi-bin/showa.cgi?C=1097435
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