These days a car is no more a luxury, it has become a necessity. It is a dream of every individual to travel in their own car. Auto dealers and the other lenders offer loans to the people for purchasing a new car. But sometimes it becomes tough for a poor credit borrower. Most of the lenders do not want to approve the loan for a poor credit borrower. Poor credit auto loans offers auto loans for these people without checking any credit record, so they can easily fulfill their dream.This loan is available in two forms, secured and unsecured auto loans. Secured auto loan lenders require collateral against the loan but with unsecured auto loan borrowers is not required to place any collateral. Generally the collateral is the new car but if the borrowers do not want to take any risk against the car then they can place their property or valuable asset as collateral. If the borrowers pay the loan amount within time, then they can get back their deposited security without any hassle.
Generally the rate of interest with this loan varies from 6% to 8%. Borrowers have to make some down payment to avail this loan. In poor credit auto loans a large down payment can reduce the interest rate. The repayment tenure is 2 to 4 years. A borrower can extend the pay back tenure as per their requirement but they have to pay huge penalty charges.
To apply for poor credit auto loan, borrowers should be a permanent salaried person, citizen of US with a fixed income, should be more than 18 years of age and must have a current bank account. At present this loan is available in the market with offline traditional lenders or online lenders. Offline loan lenders require some paper work which is time consuming. But online lending is very easy and fast process for everybody.
Frank Dervin completed his Masters in Finance from
