Watch Your Step - Bad Credit Auto Loans

by Keioni Leni

You can get Auto Loans with a Bad Credit History - Yeah Right

This bad credit auto loan article comes with a health warning - don't do it. There is absolutely no question - "you can get an auto loan no matter how bad your credit history"

The real question you should be asking is - "Do I really want to?"

You see, practically anyone can get an auto loan. It doesn't matter what you income nor does your credit history matter - there is always someone who is willing to make you a loan.

What you have to remember is that every lender is out to make a profit.

You don't need me to tell you that if you have a poor credit history you are seen as a poor risk so you will be offered a loan at a higher rate of interest. At the time of writing I scanned the rates of interest being offered for a range of auto loans. The lowest rate on offer was about 5.5%. The highest rate was just over 22%.

Guess which rate you get if you have a dubious credit history?

Yeah right - you are required to pay through the nose. What's more, poor credit history loans tend to have the most punitive late payment provisions. If you miss a payment your loan period will be extended, you could receive a penalty charge and there may be an interest rate escalation for the rest of the term of the loan.

In short, any loan you get is likely to be on the worst terms imaginable. And should you have any problems in making the payments you are going to be penalised hard.

There is no way to put a gloss on this. Most people who have a poor credit rating have got that rating for a reason. Entering into another loan is most likely the worst thing you can do. Only enter into a bad credit loan if you absolutely have to and if you are absolutely sure you can maintain the payments.

OK - health warning rant over. There are hundreds of sites on the internet that offer loans for just about any purpose no matter what your credit rating of history. Some of them offer to provide you a loan and thereby help you repair your credit history.

The only way taking out a new loan can improve your credit rating is if you make uninterrupted payments in full for the life of the loan. Don't be taken in.

About the Author
Keoni Leni is the developer of Auto Loan Info, Based on his own experience on obtaining auto finance, http://www.autoloan.jklblog.com contains all the information you will need to find the loan that meets your needs.