Bad Credit Auto Loan
Getting a bad credit auto loan is not difficult, there are many of credit available. Generally, getting this loan is easier than unsecured personal loan since the car is automatically used for collateral.
There are two main categories of loan lenders providing such loan:-
1) Subprime lenders - These lenders will offer auto loan with reasonable higher interest or “prime” rate charged by conventional lenders. They purpose is to help poor credit peoples to own their car with good loan.
2) hard money lenders - They don't require much information as Subprime lender does, the interest charges is very high. This means many peoples defaulting their payment from this lenders. And the high interest is made to cover up the defaulting. Normally they will require borrower to put collateral.
Some tips of getting auto loan
1) Know your credit status - get a free credit report online to review your credit score. Check out your credit report to ensure there are no error or mistake in it, cause all errors even like spelling of the word will affect your score. If any error found, report to credit bureau to make an immediate rectification.
2) Know your likely interest rate - prepare a budget, estimate how much you can afford to pay for the loan.
3) Get various loans quotes - this is the best way to know whether the dealer is giving you the good term. Make a comprehensive spreadsheet and compare all, select the best from the comparison.
4) Credit unions - you may consider the credit unions as source of getting this loan. They offer some of the most competitive rates to their regular customer.
For more car loan information, please check out Car Loan Guide instead of Bad Credit Auto Loan
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