Loans for the people with not so impressive credit score and once these loans are repaid in time, the credit score of the poor credit borrowers start improving.
As we all know, buying a car with an auto loan is the most convenient way to buy car these days. For this reason, these auto loans are designed specially for the people with poor credit score.
Poor credit auto loans can be availed by the borrowers in two options. Unsecured loan option is available without placing any collateral. But secured option is available only to the borrowers who place their valuable assets as the collateral for the loan. Usually the car is placed as the collateral but other assets like jewellery and house can also be placed as the collateral for these loans. If the borrower cannot repay the loan, the lender sell the asset placed as the collateral to recover the loan amount given to the borrower.
The loan amount depends on the repaying ability of the borrower and the price of the car. Unsecured loans have high rate of interest which varies from 14%-18% and the loan term is shorter. Secured loans have lower rate of interest which varies from 6%-11% and the loan term is comparatively longer than the unsecured loans.
To avail the poor credit auto loans, there are some conditions. The borrower should be above 18 years of age. The borrowers, who are not adult, have to arrange a co-signer for them. The co-signer should be above 18 years of age. The borrower should be employed and should be in a position to repay these loans in the decided repayment time. A driving license is necessary for the adult borrowers.
Poor credit auto loans are available through traditional and online lenders. For online loans, all the loan procedures are done through internet.
Carney Alden is a Master in Accounting and Financial Management from Lancaster University Management School. Having completed his Master in Finance from Derby University. He provide useful advice through his article that have been found very useful. To find Bad Credit Car Loans , Car Loan visit http://www.capitalcarloans.com