Auto Bad Credit Loan

Posted by admin on November 20th, 2009 at 04:55pm

auto bad credit loan

Question:
How does a auto bad credit loan really work?
My credit score is most likely zero, which I know is not possible, but it’s pretty bad. Say for example I want a five to six thousand dollar car, how much would I have to put for a down payment and how much would the interest generally be for an auto bad credit loan?

Answers:
You have a choice between an unsecured car loan, secured car loan, personal car loan, or adverse credit car loan. You can try to get the car loan based on your choice. An unsecured car loan could be obtained without putting down any collateral. However, secured car loan needs collateral.
The advantage that you would get is that longer repayment period will be there in a secured car loan. The repayment terms are shorter with an unsecured car loan. Since the risk is greater to the lenders in the case of an unsecured auto bad credit loan, the repayment terms will be shorter.
To apply for a car loan, go to http://loan-4u.freehostia.com

In this scenario it would be based on the car dealer and then the bank issuing the loan. In the scenario which you describe it would vary but my prediction is it would be small in some cases as to what the down payment could since they dont expect very much with you having a bad credit score. The trouble would hit you however as to what interest rate you would get. That will be the larger problem as this will drive your overall investment in this vehicle upward. You may want to try your current bank if you have a decent standing with them. They might be able to assist you more knowing you as a account holder and being able to analyze history of your accounts. They may also be a decent location to provide you with advice. The bank that you consult might ask that you issue a down payment, however in this situation depending how your vehicle comes out in the deal if it is worth a large percentage less than what you are paying. In that case you will have to pay the difference. T!
his is all based on your bank. Best of luck and have fun on the car hunt.

Under Cars and Bad Credit