If You Have A Bad Credit Score

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					                       If You Have A Bad Credit Score

For those who have poor credit scores, no credit history, or have had issues with their
credit rating in the past, it is possible to buy a car, even though most bank lenders would
not be willing to offer you a loan. With the guaranteed car finance, you are going to be
able to purchase a car from any dealer, and any amount, as long as you are able to
provide the required information, and the required down payment amount towards the
purchase, when you are choosing to take out this type of loan.

With a guaranteed loan, buyers are going to be required to:

      put down a deposit sum of at least 20% of the car's purchase price (or a sum that
       is equal to 4 monthly payments);
      provide their: name (ID card which is a passport or driver's license), address, and,
       employment details;
      banking information (possible bank statements);
      a current utility bill; and,
      proof of current mortgage or rent payments that are made on a monthly basis.

The terms of the process may vary a bit depending on which lender you go with, but they
are fairly straight forward for all buyers. The guaranteed car finance contract is an
agreement for hire arrangement, where the financing company will take the ownership of
the vehicle, during the duration of the loan period. A monthly rate is going to be charged
by the finance company to the buyer, and in exchange the buyer has access and use to the
vehicle. Finance charges plus the loan amount will dictate what the monthly payments are
going to be under the terms of the contract agreement with the buyer.

While paying down the loan amount, the borrower has the duty to maintain the vehicle
according to the terms of the contract for hire they have set up with the financing
company. In return for lending the buyer money, the financing company gets a tax break,
and the borrower will not be increasing their net asset value, due to the fact that the
lender retains possession of the car during the term of the contract agreement they have
entered in to.

Although different individuals tend to apply for this type of lending agreement, the loan
type is geared towards buyers that:

      have poor credit scores;
      have default judgments entered against them;
      have bankruptcy proceedings that are lingering over the credit score (possibly
       restricting them as far as the loans they can borrow;
      those who have credit delinquencies; or,
      buyers with no credit history, who are starting to build up a credit rating, and want
       to purchase a car, but are not able to take out a traditional loan, due to the fact that
       they do not have an established credit history.

Regardless of what situation you are in, if you are having a hard time taking out a
traditional car loan, but want to buy a new car, one option to consider as a borrower is to
turn to lenders that are offering a guaranteed car finance loan.

There are a lot of people that have had their credit rating negatively affected by the
current economic crises and getting a loan is not easy. To obtain car finance guaranteed it
pays to search online for companies that are experienced in this area. They will all offer
different deals and you need to make sure that you are aware of all the important details
before going ahead.

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