Bad Credit Car Loan Extending Finance To People With Bad Credit

By: Gracy Parker

If you are under the impression that bad credit may hamper your chances of getting car loan, you need to think again. There are many lenders in the UK financial market who offer bad credit car loan to the borrowers with bad credit history.

Bad credit car loan allows you to get your dream car financed despite the presence of bad credit. A person having bad credit record does not mean that he will always remain so. Bad credit car loan provide such a borrower an opportunity to improve his credit record by repaying the instalments in time. This will help bad credit people in future transactions.

Bad credit is now increasingly affecting the borrowers in the UK. The increasing number of bankruptcies and repossessions substantiate this fact. Generally, bad credit history arises due to arrears, county court judgements, default in repayments and bankruptcy.

Bad credit does affect the overall credibility of the borrower. However, with the changing scenario and influx of money lenders in the UK financial market, bad credit car loan is not much difficult to get.

Bad credit car loan may be secured or unsecured loan. In case of secured bad credit car loan, the lender gets the financed car as collateral. This assures the lender about the repayment of the loan amount and, in turn, the lender provides you a low rate of interest.

Sometime it may become difficult to get unsecured bad credit car loan due to the presence of bad credit history and the fact that the borrower will not furnish any collateral. Unsecured bad credit car loan increases the risk undertaken by the lender. Therefore, the lender will charge you a high rate of interest.