Having a bad credit is just an indication of the past repayment record of a person and that doesn't mean a person cannot wish to buy a car. The lenders staunchly believe that people who have a bad credit history can recover from it and attempt to set right the credit history by opting for a bad credit auto loan and better their credit score.When a person having a bad credit history has a permanent job and is confident of repaying the loan in easy installments, he or she can undoubtedly opt for a bad credit auto loan. Bad credit auto loans can be availed either by placing collateral or without one. In both the cases, the borrower gets hundred percent finance for his car and there is a chance of reducing the interest rate if the borrower can afford to pay a down payment.
Evidently, people with bad credit history cannot afford to pay a large amount of monthly installments and hence, it is better to opt for a longer repayment plan so that the monthly installments can be borne easily.
Those who suffer from default, late payment, missed payment and having arrears are good candidates for availing bad credit auto loan. When a person has a credit rating below 650, then he is considered as a bad credit record holder. The bad credit auto loans are offered by banks, credit unions, auto dealers, financial institutions, brokers and individual lenders.
When a secured type of auto loan is obtained, the security is usually the new car, the borrower's house or other assets. There are some lenders who prefer to have a cosigner with a good credit history in lieu of collateral. In the event of the borrower failing to repay the loan amount, the cosigner is required to repay the loan amount in full.
Obviously, unsecured bad credit auto loans carry a higher rate of interest as against a secured bad credit auto loan which may have a comparatively low rate of interest. Bad credit auto loans can be obtained by applying online too. This enables to compare the various rates of interests, fees and charges offered by the different lenders. It is just enough to fill an online application form but it is imperative to find a reliable lender.
Acquiring bad credit auto loans through online takes only a few minutes to complete the formalities but the borrower should exercise caution in not revealing his social security number. Another option to get a bad credit auto loan is to approach a sub prime lender who would be in a position to offer a comparable rate. There are many brokers who have easy access to sub prime lenders who would be in a position to offer assistance.
Visit http://autoloans101.info for help and guidance to obtain auto loans even if there is a history of bad credit.
Source:http://www.goarticles.com/cgi-bin/showa.cgi?C=1313310