by Nancy Osborne, COO of ERATE®
It's not just a dream notion that people under the stack of debt statements that have remained unpaid, still have the wherewithal to purchase a car! Yes, there are avenues now where a person can finance the purchase of a car, even if he or she has a bad credit report. Those avenues are Bad Credit Auto Loans. No more only people with good credit history are entitled to receive auto finance from auto loan market - those with bad credit report are also welcome here.
There are lenders who specialize in providing auto loans for those with a bad credit report. The interests of these bad credit auto loans are usually quite high since the lenders have to bear the added risk of providing loans to those who have been loan defaulters earlier. Besides providing auto financing to finance a car purchase, these bad credit auto loans if used well offer an additional benefit of improving your credit record. One with a poor credit history can once again bounce back with an improved credit rating. When borrowers start paying regular and timely payments lenders will find it easier to grant them other loans.
Types Of Bad Credit Auto Loan
There are different types of bad credit auto loans that are available in the market. Some bad credit auto loans are unsecured and some are secured. Secured auto loans require collateral. The interest rate of these loans is comparatively low. On the other hand unsecured auto loans do not require collateral. But the downside is that their interest rate is quite high for the reason that they do not have the guarantee of a borrowers' collateral.Online Bad Credit Auto Loan Lenders
If you find it difficult to shop around for bad credit auto loans, the ideal thing for you to do is to check out numerous online bad-credit auto loan lenders. There are an increasing number of online auto loan lenders who accept applications for auto loans from those who have poor credit report. Because there is no paucity of lenders, you may strike a good bargain and find an affordable deal. Instead of rushing to the first lender that comes your way look for as many lenders as you can. Compare the rates they are offering and see if they will be willing to negotiate on the interest rate.
The duration of a bad credit auto loan varies widely. You should select loan programs that will be within your means and one that has the repayment schedule that you will find easy you adhere to. Although some lenders need a down payment before they disburse the loan amount to you, there are lenders who will provide you bad credit auto loan for 100% amount of the car's purchase price.
Nancy Osborne has had experience in the mortgage business for over 20 years and is a founder of both ERATE, where she is currently the COO and Progressive Capital Funding, where she served as President. She has held real estate licenses in several states and has received both the national Certified Mortgage Consultant and Certified Residential Mortgage Specialist designations. Ms. Osborne is also a primary contributing writer and content developer for ERATE.
"I am addicted to Bloomberg TV" says Nancy.
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