Bad Credit Auto Loan | Bad Credit Car Loan | Auto Loans | Car Loans & Car Loan Financing

Different Levels Of Bad Credit Auto Loans

Credit scores are divided into three categories; good, bad and no credit at all.  In auto financing, all these levels have different terms and conditions.  When one has a generally bad credit, bad credit auto loan companies determine just how bad their credit is before issuing an auto loan.  Factors leading to bad credit are diverse.  The economic recession for one, was a major hit for many and it led to bad credit.

Bankruptcy, arrears, and IVA’s are some factors that also cause bad credit. Bad credit comes in different levels.  One levels is 400 and below.  For this score, no auto financing option is available for it.  They are considered extremely risky.  Even if such an individual provides a cosigner, they will not be eligible to any bad credit auto loan.

Another level is just above 400.  Those with this score are required to provide a cosigner for auto financing.  They are also charged high interest rates.  One with this score may have a history of consistent repayment of loans but a major tragedy may have led to the damage of their credit, for example, a major medical problem.

There is also best, bad credit level.  This is one that nears 600.  It is easy to get bad credit auto financing with this credit score.  Those with this score are individuals who may have hit a financial slump but are coming out of it, and are beginning to make timely and consistent loan repayments.

The aim of everyone is to improve their credit ratings.  Getting a bad credit auto loan is one way to do this, and if you can, go for it.

Apply Now

Tags:

Article Categories
© 2012. All rights reserved. www.autoloans.us : 17232 Lancaster Hwy, Charlotte, NC 28277 - Phone: 800-930-9495 - Fax: 704-927-6898.

Valid XHTML 1.0 Transitional

Valid CSS!