Auto Loans For People With Poor Credit : Take These And Boost Your Credit Rating
- Date: 2008-08-06 - Word Count: 323
Share This!
Poor credit can hit you very badly when you want to apply for any loan. There are very few loans which are available to the bad credit holders. If you repay the auto loans for people with poor credit timely your credit score can go up.
As the auto loans are offered to people with poor credit there is a risk involved for the lenders. The borrower may not repay the loan in time or cannot repay the loan. This is the reason for which the lenders charge high interest rate. Secured loan option is safe for the lender. That is why secured option has low interest rate. Any asset like your house, gold, jewellery or the car itself can be placed as collateral for this loan .If the borrower cannot repay the loan the asset placed as collateral is sold by the lender to recover the loan amount.
Unsecured option is safe for the borrowers. There is no need to place any collateral. The borrower stays free of the tension of loosing the asset placed as collateral if he cannot repay the loan. Generally the loan amount of the poor credit auto loans depends on the market price of the car. The loan term is available in two options. Long term option is for more than 5 years. Short term option is for 1-5 years. Long tenure has low interest rate and short term has high rate of interest.
Auto loans for people with poor credit have generally higher interest rate. But the market competitiveness lowers the interest rate to make it affordable for the borrowers. The interest rate of the unsecured loans varies from 14% to 18%of the total loan amount. Secured option has the interest rate of 6% to 11%. A valid driver license, fixed income and updated credit report is necessary to avail these loans. These loans are offered by the online as well as offline lenders. Online loans are fast.
As the auto loans are offered to people with poor credit there is a risk involved for the lenders. The borrower may not repay the loan in time or cannot repay the loan. This is the reason for which the lenders charge high interest rate. Secured loan option is safe for the lender. That is why secured option has low interest rate. Any asset like your house, gold, jewellery or the car itself can be placed as collateral for this loan .If the borrower cannot repay the loan the asset placed as collateral is sold by the lender to recover the loan amount.
Unsecured option is safe for the borrowers. There is no need to place any collateral. The borrower stays free of the tension of loosing the asset placed as collateral if he cannot repay the loan. Generally the loan amount of the poor credit auto loans depends on the market price of the car. The loan term is available in two options. Long term option is for more than 5 years. Short term option is for 1-5 years. Long tenure has low interest rate and short term has high rate of interest.
Auto loans for people with poor credit have generally higher interest rate. But the market competitiveness lowers the interest rate to make it affordable for the borrowers. The interest rate of the unsecured loans varies from 14% to 18%of the total loan amount. Secured option has the interest rate of 6% to 11%. A valid driver license, fixed income and updated credit report is necessary to avail these loans. These loans are offered by the online as well as offline lenders. Online loans are fast.
Related Tags: auto loans, bad credit auto loans, new auto loans, auto loans online, personal auto loans, best auto loans, cheap auto loans, auto loans fast approval
Frank Dervin completed his Masters in Finance from Oxford University, he undertook to provide useful advice through his articles that have been found very useful by the residents of the US. To find bad credit auto loans , instant auto loans, loan calculator visit www.nationalautoapproval.com Your Article Search Directory : Find in Articles
Recent articles in this category:
- Payday Installment Loans: Ideal Funds That Supports Your Impending Needs
Any impending monetary crisis will be tough to deal with, if you are not having adequate funds. Neve - Educational Loans -helps To Secure Bright Future
Education is said to be the most important thing in ones life. It not only helps to improve the stan - One Hour Payday Loans No Faxing - Fastest Option Of Acquiring Money
Nowadays, loans have become a common thing among the UK people as needs are rising while the salary - Tenant Loans - Instant Monetary Support For Non Homeowners
Are you looking for an unsecured financial help that does not demand security to place against the r - Payday Loans No Faxing - No Verification And Delay
So many times, the approval of the loan gets delayed due to the lengthy paperwork and documentation. - Bad Credit Car Loans -helps You Finance A Car
Are you in need of a new car? Here bad credit car loans can offer you finance as you need. Perhaps y - Logbook Loans - Friendly Deal For Car Owners
Everyone knows that logbook is a paper issued by driver and vehicle licensing agency. This important - Same Day Loans For People On Benefits - Quick Money For Instant Financial Hold
Urgent and unpredictable demands might arise at times when you are not financially prepared. To deal - 3 Month Payday Loans - Feel Free With Longer Repayment Option
Are you looking for the loan that can give you small cash, but for longer duration? Are you worried - Loans For Bankrupt People - Look Forward For Financial Stability
Financial acronym or injury and inability for reimbursement to the concerned are known as insolvency
Most viewed articles in this category:
- Unsecured Personal Loans - Loan for the Common Man
Loans can broadly be divided into two types - unsecured loans and secured loans. Secured personal lo - High Risk Unsecured Personal Loans at Nominal Interest Rate
Today, unsecured loans gave grabbed the market as more and more people are opting for it. The loan m - Personal Loans-Don't Suppress Your Financial Needs
Personal loans can be segregated into a secured and an unsecured loan option. If you are a homeowner - Take the Loan; Show No Reason
If you are in need of a loan and want to utilise it for any purpose without showing the reason to th - No Compromise With Your Pleasure, Have Your Own Car
On a fine morning, you get up to see the sun shining brightly in the sky, leaving the world bathed i - Subsidized And Unsubsidized Student Loans!
These loans carry different loan terms and different requirements. According to the student situatio - Interest Rate: The Key Factor on Car Loans!
There are such wide variations in APR between lenders that you can end up overpaying on your car loa - Fight Against Tight Financial Situation With Personal Loans UK
It is always better to prepare yourself for unforeseen or unexpected expenses. If you are not born w - Advantages And Disadvantages Of Lack Of Security On Loans!
The unsecured nature of these loans attracts tenants but homeowners as well. However, in order to de - Unsecured Personal Loans-A Loan Everybody Is Eligible To Procure
Unsecured personal loans cater to urgent day-to-day financial requirements, and have become very pop
