Recent studies by Alliance & Leicester Bank showed that there is an alarming increase in the number of bad credit holders. Also, defaults, CCJs and bankrupts are bound to increase in 2007. This is enough to guess the debt situation of Britons. Most of the loan takers fall into the category of bad credit for one reason or the other. You may be the one with a bad credit score but life does not end here. You can still drive you dream car by availing a bad credit car loan through the Internet.
Some websites calculate your credit score in a fraction of a second. All you need to do is fill in your details like mortgages, due payments, arrears, defaults, CCJs against your, our bankruptcy state and other such details. But first let us find out what kind of bad credit customer you are.
1.Low bad credit- If on a scale of 800, you score anything below 700, you are a low bad credit customer. It's not a very difficult road for you. If you dream of purchasing a car, you can avail a bad credit car loans UK. The lender may charge a slightly higher rate of interest, but you can shop around for competitive interest rates and loan deals.
2.Medium bad credit- If you score below 600 on the scale of 800, then you may find problems with high street banks. They will straightaway reject your car loan application. But there are a number of lenders providing online bad credit car loans. Private lenders would consider your application and may give you tailor-made loan deals to suit your requirements. In this case, they will prefer if you are a homeowner so that they have some security. But if you want to go for an unsecured bad credit car loan, you'll have to pay a higher rate of interest on a comparatively smaller amount, and for a short period.
3.Heavy bad credit- Unfortunately, if you fall in this category and score less than 500, you may have to face grave difficulties in availing a car loan. But don't lose hopes. With the advancement of the online media, online bad credit car loans in UK provide you with several options. The lender may ask you for HP (hire purchase) car loans. As per this bad credit car loan agreement, the borrower does not get the ownership rights of the car unless the whole loan amount is paid off by the debtor. This category will invite the highest APR of all.
So, don't forget the dreams of owing your dream car if you have a bad credit score. Explore the market and get your bad credit car loan deal finalised.
