For the people of UK vehicles have become a necessity. And just lack of money can't stop you from buying a car of your dreams as there are financial organisations offering easily available loans. And if you are worried about your credit history and thinking apprehensively that your loan application will be denied because of your bad credit record then it is time to start thinking other way. Present loan market is flooded with lenders offering auto loans for people with bad credit.
Facts related to bad credit auto loans
As these loans are specially designed for people with bad credit score, they come with a little higher interest rate.
These loans are available in both secured and unsecured form and people not willing to risk their property as collateral should go for unsecured loan option. However interest is high in case of unsecured loan in comparison to the secured loan as lenders are not at very much of risk of losing lent amount. Both the loans have contrasting merits and demerits and depending on personal financial status one should decide upon the type of loan very judiciously. Loan amount offered is in general equal to the price of vehicle you are looking to purchase. Auto loans for people with bad credit can be used even to buy old cars, however age of such cars must not be more than 5 years. These loans are generally short term and repayment duration varies over 2 years through 5 years.
Documents and other eligibility criteria
To be eligible for bad credit auto loan you must be a citizen of UK and you need to furnish documents related to proof of your residence. Alongside you need to present documents highlighting your present employment status. And you will have to make some down payment.
