Wish you had your own car to drive through places of your work or leisure, but can't realize that as you suffer from insufficient fund. You are reluctant to approach lenders since you are tagged as a poor creditor. Shun your apprehensions and straight away approach lenders because poor credit history car loans have been fabricated to gratify borrowers like you only.
Poor credit history car loans: sources and types
You can avail poor credit history car loans through physical and online lenders. Physical lenders comprise of banks, financial institutions. It has been observed that the online lenders provide these loans at cheaper rate and save your precious time. They are more economical to your pockets too. Dealers of the car can also arrange loans by acting as mediators between you and lenders.
You can avail poor credit history car loans either in secured or unsecured forms. Going for a secured loan necessitates you to furnish some collateral like your home, the car you are intending to buy and other valuables. Unsecured one is obtained without any collateral. Both have their pros and cons and it is after weighing both the options that you should choose one that suits you.
Poor credit history car loans: getting started
Poor credit car loans are available readily if you go for the secured type, while the unsecured ones are quite cumbersome to obtain. If you can make the lenders feel safe about the repayments you can easily avail the unsecured loans. To do this you have to show your employment status and sound financial health. A larger down payment more often than not suffices for that, as you are seen as a sincere borrower.
Poor credit history car loans: amount, rate and repayment
The amount and rate of interest depend on whether the loan is secured or unsecured. A secured poor credit history car loan supports a relatively larger amount at lower APR (annual percentage rate) than unsecured one. Repayments are flexible and you are free to fragment the installments as per your convenience. There is always a lurking danger of your collateral being repossessed by the lenders in case of failure in repayments if the loan is secured type.
However practicing sincerity and discipline improves your credit history which can be handy in future monetary requirements. So with poor credit history car loan you can not only purchase your car but also mend your credit ratings.
