These loans are specially designed to fulfill the dream of car for bad credit borrowers. Having a bad credit score is not unusual. But applying for any loan is hard with bad score. Auto loans bad credit is designed for this purpose. Bad credit borrowers can easily apply and get these loans to buy their own cars.
These loans are available in secured and unsecured option. As we all know, the secured loan requires security for the loan. You have to put your house, the policies or the vehicle itself to secure the loan. You get the chance to choose the term of the loan and the interest rate according to your convenience. No guarantee is a good option for tenants as there is no need to do something as collateral. Borrowers remain free of tension as there is no possibility of losing your valuable asset, if you can not pay the loan amount.
Secured loans have low interest rate ranging between 6% -11% of total loan. The loan term is longer for these loans. Usually varies of 5-25 years. Unsecured loans are 14% to 18% the total amount of borrowing and the interest rate. The loan term is short term of 5 years.
You must be an adult with a job full-time to be eligible for bad credit auto loans. His salary should be stable. You must have documents to prove their age, location labor, wages and citizenship. However, these criteria vary from lender to lender.
A valid driver's license and proof of income is necessary to use these loans. Good credit score, always reduces the interest rate for borrowers. Auto loans bad credit available in the online and offline lenders. Banks and financial institutions are the traditional lending institutions. The online loans are suitable and eligible borrowers without problems. You can search for lenders and loan options while the Internet. The most loans are approved faster than offline lenders.
About the Author:
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 cheap auto loans, auto refinance visit http://www.consumerautolending.com
Article Source: ArticlesBase.com – Auto Loans Bad Credit: Poor Creditors Can Enjoy the Ride