This is the story of Yvette, a single mother and divorcee who was in desperate need of a vehicle. Few months back she was the victim of an abusive marriage as her husband had drained all her savings forcing her towards bankruptcy. This irresponsible financial hazard led her to bad credit. She had leased a vehicle but was due to return because of this she was denied credit by the original dealer leading her into financial mess. After first week of bad credit car loan rejection, she succeeded in clearing her documentation process. All thanks, to her credit company that made her dream come true.
Today securing a bad credit auto loan is easier regardless of your financial situation. This includes buyers that have low credit scores according to ‘Automotive Credit Trends Reports’ issued by Experian. This report says that car buyers with low credit scores have increased to 44.1 percent in comparison to those in better position. Overall the credit scores for new buyers have dropped to ten percent while the average for used car buyers has gone down to eight percent.
Financial experts say that the most common to finance truck, car or SUVs is through bad credit card loans. This is because it can be extended to a period of seven years. It is important to understand the terms and conditions when you go for auto loans. First, is to understand the repayment options because in most cases the repayment or amortization period is of seventy two days. This is generally done to reduce your payments but you will be left with balance to own it even after completion of your loan. In this way you save off enough for refinancing too. Therefore understand the repayment options before applying for auto loan.
Usually banks and other financial institution do not finance customers with bad credit history. But nowadays the loan qualification procedures have become quite simple to connect borrowers with organizations that work for such consumers. They have their unique way to assess the financial condition of the customers. These can be job stability, credit scores or the time of the bad credit the customer must have experienced. These agencies also try to figure out whether bad credit is in the form of proposal, bankruptcy or previous possession.
The bad credit auto loan creditors work out with customers and offer them best terms, value and rate. These also include financing lower kilometer vehicles and new models which might be affordable. In terms of financial disclosure regardless of what kind of vehicle you select to buy, you have the right to get full disclosure of loan under Consumer Protection Act. This document has the details regarding the financed amount, rate of interest and the total amount at which it has been borrowed. You should insist the dealer to provide all these information before signing any deal. In this way it is targeted to customers with highest probability rate. As they pay for their vehicle regularly, it helps them to re-establish their credit. In this way the customer is benefitted and saves himself for further damaging his credit report.