Having a bad credit is not deterrent in attaining a customized loan anymore. Now the time has come for people with bad credit to heave a sigh of relief and drive their own vehicle. If you are suffering because of bad credit and desperately need to buy a vehicle, all you have to do is to apply for a poor credit auto loan.
Apprehending these loans
Poor credit auto loans are loans offered to people with bad credit at a little bit higher interest rate. These are perfectly tailored for people with bad credit so that they can also buy their dream vehicles. These loans come in two forms, secured and unsecured.
In the case of a secured form you are supposed to keep any of your possession as collateral. You will benefit with a lower interest rates, low monthly repayment schedule, longer repayment tenure, and flexibility in terms of choosing interest rates. But you must be careful with the repayment because any discrepancy in repayment may cause you loss of your property.
In the case of unsecured poor credit auto loans you are not supposed to keep anything as collateral. This would keep you away from the tension of loosing any property. However the interest rates offered in such loans are higher when compared to secured ones.
Interest rates
Secured poor credit auto loans come with an interest rate of 6% to 11% of the loan amount. Unsecured poor credit auto loans come with a much higher interest rate of about 14% to 18% the loan amount. The repayment tenure for secured loans is longer than for unsecured.
