Bad Credit Auto Loans For Poor Credit
If you have a bad credit auto loan history but need a car finance, fear not. More than for any other purchase, there are lenders who specialise in finance for people with poor credit scores. These companies understand that things go wrong in life and sometimes we haven’t been able to meet our financial obligations. Many of them offer bad credit auto finance; meaning you don’t need to show a whole bunch of financial statements and other information in order to be approved for a loan.
So long as you can demonstrate that you are in a better financial position today than you were in the past, then there’s every chance you will be approved for a auto loan despite your bad credit history.
Financing your next vehicle
The term “auto loans” can be applied to the financing of virtually any type of on road vehicle.
There is a plethora of lenders out there that provide finance for vehicles. Auto financing is one of the most common lending scenarios there is. Comparison sites such as Canstar allow you to compare over 200 car loans at a glance. That just shows you how many finance options there are out there for bad credit auto loans.
Auto Interest Rates
There are as many variables with auto interest rates as there are variety of plants and flowers at Melbourne’s Botanical Gardens. That’s why it’s so important to shop around for the best deal. Generally secured loans will attract a lower interest rate than an unsecured loan.
The great thing about car loans, compared to say a personal loan to buy a vehicle, is the interest rates for auto loans are considerably lower than that of a personal low. We are talking like about half the rate of a personal loan in many instances. And that ads up to huge savings on interest over the duration of the loan term.
As mentioned at the start of this article, the amount of lenders out there offering specific loans for cars, bikes, vans or practically any type of on road vehicle is endless. A vehicle is such a common purchase it’s little wonder so many finance companies offer auto loans tailored to this market.
So with such a vast choice of lenders, how do you make a decision on which one to go with?
Once again I recommend using a comparison site to save time and frustration. First you should decide how much money you need to borrow. Use some of the free calculators that just about all finance company sites offer and work out the monthly repayments for a specified period so you can establish what you would be comfortable repaying. Obviously you will want to get the cheapest interest rate possible, but sometimes this will depend on a few things.
1) Do you have a good credit score or a sketchy one?
2) Will the loan be secured or unsecured?
3) How financial are you and can you prove your income and earnings?
The more you can satisfy a lender’s criteria, the more chance you have of securing a deal with a lender who offers low interest rates.
To sum up, work out how much money you need, how eligible you are to meet all the lending criteria and, most importantly, shop around for the best deal.