All you want to know about Car loans for bad credit in USA

M G Singh By M G Singh, 24th Dec 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/39hr1r1l/
Posted in Wikinut>Money>Debt

Bad credit is bad, but it is not a bar to getting credit for a car if you play tour cards skillfully.

Cars and bad credit

What is bad credit? It’s a term that nobody likes but in some cases is inevitable. It basically covers your reliability to a creditor for any loan. Bad credit would make it harder to get a loan from a financer. It basically concerns your credit score, late payments of credit card dues or late repayment of any loan. But times have changed and it’s possible for you to manage a car loan even with bad credit. There are loans available with no credit check for you to buy your car
.
Car loans for bad credit are available in two different forms. With these loans you can opt to buy either an old used car or a new car- as per your choice. Firstly we have the secured car loan. This is easier to get as the car is mortgaged to the lender. In this type of car loans for bad credit the car becomes a security and the interest rates are also comparatively low. There is a second type of car loan which is unsecured car loan. In such loans no security is asked for but the interest rates will be high to cover the risk of your getting a car loan without security. There is tough competition in the market and yet it may be possible for you to manage a good deal. But for this you will have to do some market research and also get on the net to see what dealers are available and what they can offer. You can then make a comparison and choose what suits you the best.

The amount of loan financed would depend on what type of loan you have applied for. In case it’s a secured loan and your car will be the security then it will be possible to get a loan that finances the entire cost of the car. Thus in car loan for bad credit a secured loan is a better option as the loan will equal the price of the car. Thus you have every chance of buying a car of your choice. But in case you are opting for unsecured loan then the amount of loan will be much less than the price of the car and the balance of money will have to be paid by you to get your car. Not only this but the interest rates also be much higher. These interest rates will also vary from customer to customer depending upon his credit rating and assessment as risk to the lender.

Though the financial market is competitive yet one cannot expect anything but high interest rates in such loans for bad credit. Another point to be noted is that while secured loans are disbursed and payment made over a longer period than unsecured loans, which are for a much shorter period of time. This is natural as the lender would like his risk to be minimized as far as possible. It’s better in case your credit is bad and you have decided to go in for a car that you surf the net for the best possible deals. The net is a storehouse and a proper application can achieve good results. Remember it’s a highly competitive market and quality time spent on the net will reap rich dividends.

On the net you will be able to locate the cheapest and best offers. In addition you can also apply on the net itself. This obviates the paper work and the decision of the lender to grant you a loan is quicker. So even if you have bad credit for car loan that’s not the end of the road for you.

Tags

Bad Credit, Car Loan, Cars And Loans, Debt

Meet the author

author avatar M G Singh
A man who spent his early years in Air Force. An avid writer with over 6000 articles and 60 short stories published.Two novels on the anvil for publication.

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Comments

author avatar viewgreen
24th Dec 2014 (#)

Informative article and the sound you have experience about. Thank you for sharing this information.

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author avatar M G Singh
25th Dec 2014 (#)

thank you Viewgreen

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author avatar Fern Mc Costigan
25th Dec 2014 (#)

Indeed the experience is not a nice one, as many dealers want to sell you what they want a do not your Desiree. Many of those lots told me a number of lies and at the end one believed in me

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