High risk car loans, often called “bad credit car loans,” or additional opportunity car loans are loans made to clients who have either no record as a consumer, a low credit score, or different flaws on their credit report that would cause a conventional money lender to turn them down.
Unlike traditional moneylenders, when you take out a high-risk car loan, the broker will search for a way to get you approved, not for a way to turn you down. But since these banks lend to individuals with bad credit, the financing cost is much higher than a conventional loan. Simply remember that if you pay this loan on time, the funding cost on your next conventional car loan will probably be lower because of an enhanced record as a consumer.
There are many companies that specialise in borrowers who require high risk car loans. Why do they do this? There are various reasons. Read more
Perhaps you have seen the term ‘special finance car loan’ online when you were shopping around. If you are not familiar with the term, what it means is that car loans are available to people with poor or bad credit. The most recent statistics tell us that sixty percent of all consumers have less than perfect credit. These consumers are not typically allowed to borrow money from traditional banks because banks check credit ratings and flatly refuse to loan people with bad credit money. Persons with bad credit are considered to be ‘special’ cases, so hence the term special finance car loan was contrived.
Individual loans for car finance are widely available today. As the economy has taken another turn for the worse, more and more people are struggling financially. Many people are falling behind on their bills and cannot pay off their credit balances on time. This leads to the decline in their credit rating, making it impossible to buy a new car, as traditional banks refuse to lend them money. However, thanks to the special finance car loan the typical consumer who is having money troubles can drive the car of their dreams as many lenders have emerged over the past couple of years offering to lend money to ‘high-risk’ individuals. Read more