Do you have any plans to purchase either a used car or a new car? If your answer is “YES” then you need to apply for a good financing option to purchase the best car you wanted. However lenders find it highly risky to provide the lending amount for people who hold bad credit car scoring. A bad credit scoring can occur because of bankruptcy, arrears etc. However in such situations, bad credit car loan can be helpful to purchase a car of your choice.
Lenders can choose to provide either a secured credit car loan or unsecured credit car loans depending upon the credit score. If you wanted a bad credit car loan for purchasing a car then you may want to show collateral for getting the loan. You can opt your property as collateral. With the help of your bad credit car loan you may choose to repay the amount to the lender with very less repayment interest and at the same time with longer interval of time that can help the borrower to be on safer side. At every level a bad credit car loan can help to increase your credit scoring.
The interest rates for most of the bad credit car loans depend upon the credit score of the holder. It varies from 3% to higher rates of 14% depending upon the loan holder’s credit score. If you opt for a secured bad credit car loan then the interest rates will be lesser wherein the interest rates for unsecured bad credit car loan will be slightly higher. The interest rates will also change with the the number of days for repayment. If the number of days is longer then interest rates will be lesser and if the number of days is shorter, then the interest rates will be higher.