subject: Car Loans Bad Credit: Finance Despite Bad Credit [print this page] The lending agencies do not like to receive application for car title loans from the borrowers ho are tagged with IVAs, CCJs, defaults, arrears, bankrupts etc. It is, usually, difficult for the borrowers to secure this kind of loans unless they are ready with upfront payment. Despite the situation is so, they need not be upset totally. The financial market has no less affected by the recent recession and its undesirable effects. It has, therefore, taken measures to accommodate the people who have history of bad credit. Car loans bad credit have been introduced in the market to target these men and women.
The lending institutions follow the existing norms of the market and offer car loans bad credit in two forms: secured and unsecured.
In the first form, that is, in the secured form of car loans bad credit, the loan-seekers are to mortgage their vehicle against the loans. The borrowers get some advantages: Right to secure the loan amount as per requirement, flexible repayment facilities, lower rates of interests etc. On the other hand, the lenders enjoy the right to take ownership of the vehicle if the borrowers do not clear the loans and violate the loan agreement.
Most of the borrowers do not have valuable possessions to use as collateral. Some borrowers do not want to pledge their home or any other tangible assets. They are free to go for car loans bad credit in the unsecured form, but they are to secure the loans at higher rates of interest. Moreover, the repayment period is much shorter.
The borrowers should fulfill the following conditions to be eligible for car loans bad credit;
a) Minimum age for the borrowers must be 21 year.
b) It is imperative that he is a citizen of United Kingdom.
c) He must possess running and checking account.
d) He must submit documents in support of his address proof and monthly income. He must earn at least 1000 in every month.
e) He must be an employee or worker in any legal establishment.
It is good for the borrowers to apply online as online application process is easier and time-saving. They can study the contents about car loans bad credit provided by the lending agencies in several websites. They can compare different loan quotes and search for cheaper quotes. This will help them selecting the best suitable loan quotes.
