Bad Credit Car Loans
One of the criteria to get a loan with a reasonable interest rate and to get the amount of financing necessary depends on your credit rating. The better your credit rating, the better the loan deal you will receive. If you do not have a very good credit rating, chances of getting a car loan at all is pretty slim, but it is possible to qualify for a bad credit car loan.
Most lenders will not offer a loan to someone with what is considered bad credit. There are lenders who specialize in bad credit car loans for the purpose of giving someone with bad credit a second chance. There are pit falls to bad credit car loans including very high interest rates, the necessity of providing a co-signer and possibly an upfront payment.
Bad credit car loan applications can usually be found online, allowing the applicant the opportunity to fill out the application at any time. Applications can also be filled out over the phone or in person. The applications are typically the same as a good credit car loan in that they ask for the same information. If you are applying for a bad credit car loan, the loan manager knows you have issues with your credit and would not qualify for a conventional car loan through a bank or credit union.
Timely payment on a bad credit car loan will help improve your overall credit standing. Defaulting on the loan will not only further ruin your credit, there is the possibility your car will be repossessed. To qualify for a bad credit car loan, the applicant must bring in a minimum monthly salary through permanent employment or a guaranteed fixed income for the duration of the loan, a bank account and a reasonable dept. The applicant must also have a valid driver’s license and qualify for car insurance. Most lenders require a valid telephone number and a credit card statement or utility bill as proof of residency.
Applications for bad credit car loans can be completed within 48 hours and have the applicant on the road quickly. There are no restrictions on the type of car that can be purchased, as long as the loan covers the cost. Cars already owned and financed can be refinanced through most bad credit car loan lenders. This method puts cash in your pocket to cover emergency expenses or just to have cash cushion.