Car loans for bad credit are the loans offered in UK to the people suffering from bad credit status. These specially created loans for the borrowers with bad credit score assist them to fulfil their dream.
These loans are available in secured and unsecured option. In secured option, borrowers have to pledge collateral against the amount. Due to this, repayment facilities become more convenient and interest rates becomes lower. In unsecured option, interest rate is higher and payment tenure is shorter.
The loan amount depends on the market price of the car. Larger amount can be approved, if the borrowers can provide a security. The interest rate secured option is 6 to 11 percent. In unsecured loans, it can rise as high as 14 to 18 percent. The borrowers must keep in mind that in bad credit loans, the interest is always higher than the loans for the borrowers with good credit.
The repayment tenure is short as bad credit car loans are short term loans. The repaying period can be anything between 48months and 60months. The borrower should keep in mind in car loans; the vehicle is used as a sort of security by the lenders. That is, the lenders can impound your vehicle if you are not able to pay back the whole amount.
Car loans for bad credit are available through online and offline lenders. Online lenders are banks, auto-dealers, financial institutions, brokers and credit unions. Online lenders offer different rates through their websites. The borrowers must try as many lenders as possible before the one best suited for them.
The borrowers must have a credit score below 650 to be regarded as the person with bad credit status. The borrower must be a citizen of UK. The borrower must be 18 and above.
Christian Phelps is a Masters in Account and Finance Management from Lancaster Uni. He has been working with loans. To find instant bad credit car loans , used car financing, car loans online visit http://www.badcreditcarloansuk.co.uk