Numbers of people have bad credit mentioned in their credit report as a result of their past mistakes of not making loan payments in time or defaulted. Still a car loan is always available for them. This is because there are lenders who are willing to provide bad credit car loans for such borrowers for buying a new or old car.
Usually lenders first want to protect them selves from risks in offering loan to bad credit borrowers. So, a lender providing bad credit car loans would like you to place some security. Your home, any valuable property or even the car you are buying serves as collateral. This way you can negate bad credit factor. Secured bad credit car loans have this advantage of competitive interest rate for the borrower. The loan amount is determined as per the value of the car and value of property offered as collateral.
Unsecured are availed for smaller borrowings. You are not required to provide any security for taking the loan. Because of risks for the lenders, they charge high rate of interest on unsecured bad credit car loans. So if you are prepared to take unsecured bad credit car loans at very high rate of interest then finding a lender is no problem.
You should also note that like any car loans, you would be making a sizeable down payment in taking bad credit car loans. The lender would look into your repaying capability too. So you must show a sound bank balance to the lender.
If you want bad credit car loans at competitive rate of interest then first pay off some debts and wait for improvements in your credit score and then apply for the loan. As far as sourcing is concerned, there are number of lenders on internet who are offering bad credit car loans. First take their rate quotes and compare them. You are sure to find a good deal loan offer. Make sure that you pay off the loan installments in time so that your credit score improves and loan availing becomes easier in future.
