As the name suggests auto loans bad credit are meant for those people who have bad credit rating. Those who have CCJs, defaulted payments, history of bankruptcy etc come in the category of bad debt people. When they go to buy a car through a loan their proposal is rejected. Now what does one do in such times? The solution is take a bad credit auto loan. With this such people are able to buy the car that they want with the help of these loans.Types:
There are two types of auto loans bad credit that is unsecured and secured. The unsecured ones do not need any kind of collateral whereas the secured ones need the borrower to have some kind of asset or property to be pledged as collateral.
Interest rates and duration:
The rate of interest will depend on the source of loan. If one takes it from an online source you will have to pay higher rates, bigger down payments and lesser time to repay. The rate is 6-8% and one has to make a down payment of 25-50%. The repayment will be 2 to 4 years. The borrower's credit rating is also an important factor for the rate of interest. A better rating will have a lower rate of interest.
However there are some ways in which one can avoid higher rates of interests. It helps if the borrower pays all his bills on time, takes only one loan at a time and keeps all his accounts up to date.
Requirements:
The borrower must be at least 18 years of age, a resident of the
Gavin Hadley has a way with dealing with loans for a long time. He is working as financial consultant with modern auto financing. He is an expert author in loans. To find Used Auto Finance, Finance A New Auto visit www.modernautofinancing.com/
Source:http://www.goarticles.com/cgi-bin/showa.cgi?C=1150159
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