Many people who have recorded a bad credit score are aware of the fact that they can no longer benefit from other loans. The bad image of your credit history has led to a bad credit score and until you fix it you can not take advantage of another loan. But have you ever heard of the possibility of availing a car loan even if you present a bad credit score? Well, I am sure that you haven’t, but if you keep on reading you will find out how this is possible.
First of all you should be updated with the fact that there is in fact a bad credit car loan specially designed to help those known as bad credit scorers. In this category fit also the IVA’s, CCJs, the payment defaulters, bankruptcy cases, arrears, and so on.
All these bad credit scorers must have previously applied for car loan with various lenders, but they have been turned down. This is the reason why these bad credit car loans have been issued as the helping hands for these bad credit scorers.
Now that you know that these possibilities are available for you, too, you should start looking for the terms. In this way you will find out that these…’special’ loans, let’s call them, come as secured, but also as unsecured loans.
With the secured loans, as you probably know already, you should present some sort of collateral to back up your loan, while the unsecured loans do not ask for any mandatory collateral. When benefiting of these loans you should learn that you can ask for an amount that is the same with the price of the car you want to purchase.
Once the loan will be approved you must be aware of the terms of repayment, and see if you can cope with them. Generally, the repayment terms for a car loan in your situation are from 2 to 5 years, depending on the amount you have borrowed. Do not overlook also the option of buying yourself an old car (no older than 5 years) while you avail the bad credit car loan.
Applying for a bad credit car loan you must present the following documentation: an up to date proof of being employed, a proof of your residential place and in some cases you might be asked as well to make some down payment.
Take notice of the fact that bad credit car loans have to be repaid in a relatively short period of time. Apart from this, you should always make sure that you will have the means to be on time with re-payments, keeping in mind the fact that interest rates will be set a little bit higher. This is why it is on your own advantage to first proceed into some online shopping and compare prices before reaching for the bad credit car loan that matches your needs.