Qualify for a car loan with bad credit
You want to buy a new vehicle, new or used? In this case, you can request a car loan with bad credit. This is the most common way to buy a new or used car.
The purchase of automobile credit allows some flexibility in the repayment of monthly payments. Indeed, the choice of the repayment period is free. It also adapted to the financial situation of the borrower. He may ask to postpone his first 3 months in case of financial difficulties.
By purchasing a car loan, the borrower also finds himself with a unique interest rate more interesting than basic consumer credit. In addition, as its repayment period is lengthened, monthly payments are lower, which is the main feature of this loan buyback.
This acquisition of automobile credit thus allows the borrower to have a clearer follow-up of his repayments of loans. Indeed, he will have to repay more than one monthly payment, grouping the different loans. He will not have to worry about the different samples made the month. In addition, this monthly payment will be lower than the sum of previous monthly payments, as long as the borrowing period is extended.
Finally, if the borrower is the victim of damage to his vehicle (theft, deterioration …), the amount reimbursed by the insurer can come to participate in the repayment of the loan.
The terms on the repurchase of credit
Overall, the repurchase of credit makes it possible to group several loans, including car loans, into one. It can be guaranteed by a bank or a financial institution. More specifically, the purchase of car loans allows the borrower to spread his debt over a longer period, and therefore reduce his monthly payments.
To make a purchase of credit, it is necessary to have the invoice or quote of the vehicle concerned.
The bank or lender is also responsible for checking the creditworthiness of the borrower in order to discuss with the latter borrowing terms (duration, monthly payments).
Finally, the financial institutions will study the debt ratio of the borrower: on average, if it exceeds 42%, the banks will consider this redemption of car loans too risky.
In conclusion, the purchase of car loans seems very attractive to finance a project to acquire a vehicle. However, it is necessary to pay attention to the expenses incurred: application fees (about 1% of the amount borrowed), prepayment fees, in order to confirm the advantages of this redemption.
For this, the borrower can use quotes online to compare different financial institutions and get closer to his bank advisor to have an opinion adapted to his situation.