The loan market in UK is very dynamic and competitive. Hundreds of lenders are trying to occupy the market. Innovation is the key to capture the market. In UK every two out of five people do not have a good credit rating. The percentage is huge and the traditional lenders are not ready to take risk with the bad credit report holders. The financial organizations have recently come up with different innovative plans targeted to capture this huge market segment.
Auto loans for bad credit people are specially designed for the people whose credit score is below the average. So if your application for the auto loan has been rejected by your bank, you may try these lenders. Almost all the lenders have their own websites. The links are provided in every financial website. If you want to visit their website, you can follow the links. The terms and conditions are clearly mentioned in their website. As per the UK law the lenders have to disclose the Annual Percentage Rate (APR) before you sign the offer document. APR is the total cost of your borrowing; it includes the total interest rates and other charges and fees.
If you are applying for an Auto loan for bad credit you need do a little research as the interest rate and APR varies. The best way to apply for the loan is to apply online. You need to fill up an easy online form.
The normal Auto loan interest rates starts from 6.2% in UK, but the Auto loans for bad credit has a high interest rate as it is unsecured and there is a risk factor involved for the lenders while lending to the bad credit people.
The lenders are financing both new and used cars. Before applying for the loan you should calculate the amount you can spare from your monthly disposable income as regular repayments for the loan. If you keep up the repayments regular it helps you to improve the credit rating in the long term.
Source :Frank Dervin
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