Everyone wants to lead a comfortable if not luxurious life. Car is a must have in order to do so. Not everyone can afford to purchase a car with his salary alone. Availing a loan is good option for such people but what if he is suffering from bad credit status? Well, the question is quite obscure but the answer is simple. Lenders have specially introduced a loan for bad creditors for purchasing a car known as car loans for bad credit.
Information
As the name suggest, bad credit loans are specially designed for people suffering from bad credit status. Anyone having a credit score of less than 600 points is eligible to avail car loans for bad credit. Also if you are suffering from arrears, defaults, CCJâs, IVA, bankruptcy etc you can still avail the benefits of these loans. These loans are available in both secured and unsecured form. Secured bad credit car loans can be availed by placing a property as collateral with lender against the loan amount. On the other hand unsecured bad credit car loans can be availed without placing any security against the loan amount.
Amount and interest
With secured genre of these loans you can avail an amount up to £ 75000. You will have to place your car as collateral with the lender to avail secured car loan bad credit. The repayment duration ranges from 5 â 25 years. Being secured in nature, it carries very competitive interest rate.
The amount that can be borrowed with unsecured form ranges from £ 1000 to
£ 25000. The amount depends upon the financial history and repayment ability of
the borrower. Repayment duration of bad credit car loans can be anything between
12 months to 60 months. The interest rate varies from lender to lender. Search well to find a lender offering it at low interest rate.
Usage
Car loans can not only be availed for purchasing a brand new car but can also be availed to purchase a used car. The only thing that you should keep in mind while purchasing a used car is that, the car should not be more than 5 years old.
Application
Car loans are easily available through online market. With few clicks you can find various lenders offering this loan at competitive interest rate.
SUMMARY
Bad credit car loans are designed for people who want to purchase a car but canât avail a loan due to their bad credit status. It is available in both secured and unsecured form and is easily available through online lenders.
