Credit check is a vital factor in the approval of loans. Even if you have something to place as collateral, your chances of getting your loan approved are less as compared to those with better credit. The traditional bankers stress more on the past credit score rather than focusing on your current status. This is the difference between the internet based moneylenders and the traditional lenders. The online moneylenders offer poor credit auto loans too.“So what if your past credit record is bad? What we look is that you should be earning enough to pay the monthly installment in time. We do not care about your past credit rankings. You can always improve it.” This is what one of the online moneylenders says.
And this is true. If you get a chance to get a loan under poor credit and you repay it off, your score improves. Based on this theory, the moneylenders offer you poor credit auto loans. There are no special eligibility criteria to avail this loan. You should be above 18 years of age residing in the
Based on whether the loan is secured or unsecured, the loan rates may vary. Also, some moneylenders may charge you a bit higher interest if your credit ranking is too poor. However, the fact is that this is a foolproof method to avail your automobile.
When you buy a vehicle under the poor credit auto loans, you get to keep the vehicle. You use it but the ownership of the vehicle remains with the moneylender. As soon as you repay off the debt, the ownership is transferred to you without any formalities. In case you default, the vehicle is repossessed. Nevertheless, this can be avoided in case you select a repayment method wherein you can easily pay off the monthly installments.
Frank Dervin completed his Masters in Finance from
