Bad Credit Car Loan - Even Bankruptcy Cannot Deter You From Getting a Car Loan
Written by: Vipul Jain
Everyone needs a car irrespective of his or her credit score.
Having a bad credit score does not take away your right to own a
car. A bad credit history may include arrears, default, county
court judgements, bankruptcy, etc. Due to some unavoidable
circumstances, you may miss out at your monthly repayments. This
is bad for your credit score. A late payment has an adverse
effect on your credit score. Default on the loan repayment is
Another thing that has a negative effect on the credit score is
bankruptcy. If you find it difficult to pay monthly installments
because of high rates of interest, you can take out a low rate
loan and consolidate your debt into a single, affordable loan.
If even this does not help, then you will have to file for
bankruptcy. When you are declared bankrupt, you are discharged
of all your debt obligations. However, bankruptcy remains on the
credit score for a number of years. During all this period, you
will find it very difficult to obtain a fresh loan.
Do not get depressed. You can take out a bad credit car loan to
buy a car. Bad credit loans are specifically given to those who
have a bad credit history. The rates of interest on bad credit
loans are higher than the rates on other loans. Before applying
for a bad credit car loan, take a look
at your credit score. You might be able to repair your credit
score. Talk to your lender and he might help you repay your
loan. He might even waive off some part of your unpaid loan
balance. Explain your reason for default and the new lender
might offer you a loan at a better rate of interest.
Your next step is to find a bad credit car loan. You can apply
for a car loan over the internet. Get a car loan as per your
needs and financial position. Once you get a bad credit car
loan, make regular payments as per the loan terms. This will
improve your credit score. Once your credit score improves,
consider refinancing your car. The second loan will carry a
lower rate of interest than your first loan. This will help you
save a lot of money.
About the author:
About the Author: The author is a business writer
specializing in finance and credit products and has written
authoritative articles on the finance industry. He has done his
masters in Business Administration and is currently assisting
bad-credit-auto-loan as a finance specialist.