While the cars graduating from mere luxury to a necessity in modern life, there is only a few that can afford to pay full cash for a car. Owning a bad credit car loan is a good alternative. There are numerous types of loans available for owning a bad credit car loan.
Generally a bad credit car loan is a car pulled by the financing company generally because of inability of the first owner to pay the EMIs. The financing company looks for the customers to sell them in order to recover the amount of loan that is engaged against that car.
These loans are considered to be a secured loan because the car that you buy using this type of loan is treated as guarantee. The interest rate that is charged on these cars are normally low risk involved on these loans are comparatively low. Since bad Credit car loan is a new loan, so it doesn’t allow you to make credit score.
While going for a bad credit car loan, your requirement has to be well estimated. None of the lenders, offer a cent percent finance on bad credit car loan. Firstly, the Down payment – it generally depends upon the severity of the bad credit, ranging from 20% to 50%.The rate of interest, depending upon the legal and credit limit, ranges from 5%-26%. While applying, you should look for the best bad credit car loan rates and also go for rate quotes from different bad credit car dealers and if still unsure, go to a counselor. It will be of immense help to you in deciding the best deal.