Bad credit used car loan has been crafted specially for poor creditors to support and assist their used car buying need. Generally, adverse credit holders are unable to qualify for loans because of their blemished credit records. Therefore keeping in mind their requirements and financial situation loan market offers bad credit used car loan to help them purchase a used car.
Bad credit used car loan is a secured loans; generally the used car that you wish to purchase acts as the collateral against the loan amount. Therefore lenders feel little secured while granting you the loan amount.
The loan amount that is offered depends on your repaying capacity, annual income, model and type of used car that you intend to buy. The amount sanctioned is much lesser than what is it is for new cars. The repayment term varies from 2-7 years and can be met easily. The monthly installments can be scheduled on the basis of your repaying ability.
Due to your bad credit score, these loans are offered at relatively higher interest rates. Generally the car should not be more than 8 years old and if the car for which you are applying the loan is not older than 5 years, it may fetch you affordable interest rates. However your car may be seized in case you falter or don’t repay the loan amount.
You can conveniently apply for Bad credit used car loan online. A proper and through market research may fetch you better and affordable interest rates. Bad credit used car loans may be prove to be the most convenient way to own a car.
You even get a chance to improve your bad credit records. If you regularly make your payments without faltering any then gradually your credit scores start improving. Once you have improved your scores you become eligible for lower rate loans as well. Just remember to pay off your installments on time.
Gary Grobowski
http://www.articlesbase.com/loans-articles/bad-credit-used-car-loan-get-finance-for-buying-old-car-701057.html
Comments
Buying a used vehicle, should we finance or buy w/ cash but with credit debt?
We have $11,000 in cash. We are looking for a used vehicle around $11K to replace our problematic vehicle. We have also $11K in credit card balance at 7.9%
Looks like we might be able to get 5.5-6% auto loan from a Credit Union. What should we do? Should we pay off some credit card and make 5K deposit to buy a vehicle or finance 100% since it is lower interest than credit card? Any other suggestion?
Thanks all for advice. So it is in a sense that getting a auto loan is replacing my credit debt to 5.5-6% loan that we are committed to pay off in the loan term, right? We haven’t had car payment for a while so it will be something that we should get used to.
I’m in central FL and we are a member of Navy Federal CU. I haven’t found any other credit unions with better rate than 5.5% for a used vehicle (older than 2 years). We are looking into getting a loan for 48 month or longer and under $200 per month.
If you can get a 6% auto loan, I’d do that and pay down that CC debt.
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Keep $5000 of your cash for emergencies and use the rest plus an auto loan to buy the car.
The auto loan charges lower interest than the credit card and therefore is preferable.
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This is from my experience!! I really really wrecked mine and my husbands credit..I think you should weigh your pro’s and con’s..If you use the 11k to buy a vehicle then you could have no car payment and then you could pay on your debt..Or if you would rather pay your debt off and then have a car payment every month and pay on it..I think with the credit card balance at 7.9% and the car at 5.5-6%, I would pay the credit card off and make a car payment with a lower percentage..That way your credit is payed off and in the future if you need it, it’s there…I hope that I have helped you..
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Buy a $5,000 and pay $6,000 toward your card. The main goal is to be debt free and $6,000 toward that debt is a huge step. Not to mention you can find a nice vehicle for $5,000.
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Hi,
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