Auto loans bad credit is targeted for the people who have bad credit score. But having a bad credit score cannot stop anyone from dreaming of having a car. These loans are the convenient way to solve your problem.
You can get the loans in two types. First is secured and other is unsecured. No collateral is required to be kept against the unsecured loans. For secured loans, collateral is kept. The loan is different for different borrowers. It depends on the market value of the car and the repaying ability of the borrower.
The rate of interest of Bad Credit Auto Loans is higher for the unsecured loans, as it is with any other loans. The interest rate in secured option is 6%-11% and in unsecured option it is 14%-18%. The important tip for you will be to pay a bigger amount as down payment to lower the monthly installments.
The repayment tenure for auto loans bad credit is 48 weeks to 60 weeks. The unsecured loans are allotted shorter period to pay back the amount as no security is involved.
These loans are available from the traditional sources like banks, financial institutions and online lenders. The vital point to be taken care of is comparison between different rates offered by different lenders is important to get the best deal. The websites of online provide you with calculators to make our calculation easy and on the spot.
However, if you can manage a co-signer who have good credit score then the interest rate is lowered which is otherwise not possible. The eligible borrowers for these loans are the person with credit score below 600.
Carney Alden is a Masters in Accounting and Financial Management from Lancaster University Management School. Having completed his Masters in Finance from Derby University. He provide useful advice through his articles that have been found very useful. To find Bad Credit Auto Loans , Auto Refinance, Auto Financing, visit http://www.consumerautolending.com