Buying a Car with Poor Credit

By: MARK WARNE

If you are having credit problems then you may find it quite hard to realize your dream to drive your own car. But a large portion of UK population suffering from credit hazards have forced lenders to come up with loan schemes to provide financial help to them. Auto loans for people with poor credit are loan products to tailor the need of bad credit holders only.

Your credit status posses a high amount of risk on the lender, so he may charge you with high interest rate. So it is better to revise your credit report before going for the deal.

Some important facts to know

Like all other loans auto loans for people with poor credit are also available in two forms - secured and unsecured. In case of secured auto loan your car will be the security against the loan. But you can place any of your valuable assets as collateral against the loan. The more equity present in your collateral the more lenders is satisfied with the borrower. Borrower may also choose to go for unsecured ones where there is no need of any type of security. A down payment has to be made against the loan.

You must be a valid UK citizen to apply for and must have a regular source of income. Auto loans can be secured from various physical lenders like banks, private financial institutions or from online lenders also. Nowadays auto dealers are also providing loans, but they mainly act as a middle man in this process. If you are going for online lenders then don't forget to check the authenticity of the lender. Stick to regular monthly installment as you obviously do not want to repeat the past faults again. Moreover it is your opportunity to get your credit status back on the track.

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