People with poor credit record worry to avail an auto loan. They think that they are not eligible for any loan. Sometimes people are excited to purchase a newly launched car but poor credit record cannot support them to do this. But now with the help of auto loans for people with poor credit, poor and bad credit borrowers can easily avail an auto loan and give shape to their dreams.
The main feature of this loan is that a borrower can avail the loan amount by both secured and unsecured forms. No credit check is done in this loan process. For secured loan process, lenders require some collateral against the loan. Usually borrowers place the car as collateral; they can also place any other valuable asset as a security instead of the new car.
With secured forms of auto loans borrowers can get the loan amount from $5,000 to $100,000. The unsecured auto loans for people with poor credit lender do not require any collateral against the loan but the approval amount is smaller than secured one which ranges from $1,000 to $25,000.
Generally the interest rate depends on the lenders. Interest rate will start from 6% and it will be maximum 8%. Borrowers have to make some down payment which is 25% to 50% of the loan amount. With the help of this loan a poor credit borrower can repay the loan amount within 25 years. Secured auto loans borrowers get the payback period from 10 to 25 years and an unsecured auto loan borrower has to repay the loan within 1 year to 10 years.
To avail this loan a poor credit borrower must be a permanent resident of US with regular employment, must have fixed monthly income, should be at least 18 years of age and must have a savings bank account. Borrowers who can fulfill those criteria need to fill a simple online application form to get this loan. One can also avail this loan through offline traditional lenders. Used Car Loans