Monday, February 2, 2009
Poor Credit Auto Loan: Bad Credit Borrowers Can Encash Opportunity to Buy Cars
Poor credit auto loans are designed for the people with poor credit score. With this loan they can easily buy cars for them and timely repayment can boost their rating to go up. These loans are available in secured and unsecured option. You will have to place collateral to avail the secured loan. Unsecured loan is free of any collateral. Secured option has some benefits over unsecured option. The loan term is extended with low rate of interest. But you can loose your asset if you cannot repay the loan in time. The loan amount in secured loan depends on the value of the collateral. In unsecured loan the loan amount depends on the salary and the repaying ability of the borrower.
Poor credit auto loans have higher rate of interest due to the bad credit history of the borrowers. Secure option has lower rate of interest. It varies from 6% to 11% of the loan amount. Unsecured option has higher rate of interest which varies from 14% to 18%.The loan term is longer if your loan is secured. It varies from 5 years to 10 years. The unsecured option has the shorter loan term which varies from 3 years to 5 years.
This loan is available to everyone tenants, students, home owners and credit status does not matter here. The loan is approved on the basis of the borrowers repaying ability. Your salary is always an important concern for the lenders.Poor credit auto loans are offered by the offline and online lenders. Online lenders are faster than the offline lenders. You can search for online lenders in the comfort of your home. All the formalities are done online. But for offline loans you will have to visit offices and all the procedures need many days to complete.
Frank Dervin completed his Masters in Finance from
Labels: poor credit auto loan
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