Bad credit does not mean that you are a bad person. It can happen due to the delay of repayment of previous loan and credit cards. If you want to avail the car loan, then you need to show your credit score to banks and financial corporations. Earlier it would have been very difficult to get the car loan with a bad credit score. But now almost all banks provide the bad credit car loan. If you meet the eligibility criteria of banks, then you can get the loan from there. But banks will charge you additional rate of interest on these bad credit loans. So you have to pay huge amount as repayment. It is better to avail the bad credit car loan from online car loan companies, and they offer low interest loan with no additional fees for bad credit scorer.
It is better to have bad credit score than nil credit:
If you do not have any credit history, then you will face difficulties to get the car loan, because banks and financial institutions do not understand your capability of repayment; it is better to have bad credit score than a nil credit history. If you have a bad credit score, that means you have purchased or availed some financial products like credit cards and other loans like, personal loans and consumer loans and you did not pay the EMI on time. In such cases, these records are shown in your credit history, and you can explain the reasons to the banks and they can provide you the fresh loan accordingly.
What are the significant features of bad credit car loan?
There is as such no big difference for the car loans for bad credit and good credit scorer. The difference mainly focuses on the rate of interest and down payment. If you have a bad credit score, then you have to carry higher interest rates and make some extra down payment as security also.
- Your credit score can be linked to your previous loan track records and credit card statements. So if you made your previous repayments on time then there is no chance for bad credit score. But if you missed any repayment previously due to insufficient fund in your bank account, then you have a poor credit history.
- For the car loans, banks mainly use the three digit credit number for your previous transitions. They can easily identify your earlier credit history through the credit society reports. So it is necessary to keep your credit score high.
- If you have a bad credit score, then also you can avail the car loans. In this case, you have you pay extra rate of interest. The interest rates can be increased up to 5% to 22% yearly on your car loan amount.
- Apart from that, no bank and lenders shall provide you 100% finance for the bad credit car loans. You need to make your down payment up to 20% to 50% of the car price.
- For the bad credit car loan, the period of loan can be less than normal car loan. It means that you have to repay the loan within a short period like, maximum 2 to 3 years. But if you maintain the repayment schedule on time, then you can extend your loan tenure. Some online car loan providers offer this facility, and they provide you maximum tenure of loan.
Now if you want to apply for the bad credit car loan then you can search on the internet and choose the online loan provider. This online loan is hassle-free and you can easily get the fund within a short time, and they can provide you with maximum amount of car loan as per their terms and conditions.