Getting a car loan with no credit or bad credit can be
difficult. Building up good credit in the first place can be
difficult for some and maintaining it is oftentimes a struggle. If
you've fallen on financial hard times and your credit has suffered
in consequence, banks oftentimes reject your loan applications
because they perceive you as being a high risk customer. Finance with bad credit
can be tuff.
But the fact of the matter is that a lot of people with bad credits actually are able to pay back loans. Finance with bad credit (bad credit finance) is possible. Even if you don't fit the standard lending guidelines that banks have to follow you can get a loan at a reasonable rate even on bad credit.
Something a lot of people looking for bad credit finance overlook is that if you hold equity in your house or property you can open a new line of credit with low-interest. It may even be tax deductible. You can spend it on a car or anything else you like and the best part about it is that your credit doesn't matter in this case.
To finance with bad credit is never easy and putting your home equity on the line could potentially put your home in jeopardy if you don't repay the debt. But with a reliable income and some spending discipline, you can manage that home equity line of credit just fine.
Peer to Peer
When we're looking to finance with bad credit we think first and foremost to tap the big banks for the money. But since 2005 a new lending trend has emerged called Peer to Peer lending (P2P lending). It's an online platform that facilitates borrowing from individuals directly instead of from an institution. Borrowers usually pay low interest rates and investors get high interest rates back on their return. In other words, it's a win-win!
Bad credit finance doesn't have to go through a big bank or institution. Borrowing online from a trusted lender can be advantageous for everyone involved.
Friends or Family
Borrowing money from a family member or a friend might seem like a dicey proposition but it doesn't have to be. Bad credit finance works with them just the same way it does when you appeal to a big bank for finance with bad credit. Create a written agreement with the lender that fixes interest rates, payment terms, collateral you put up and the consequences of not paying back the debt.
Such an agreement should be taken just as seriously as if you would deal with an institution. But the one big advantage that comes with borrowing from friends and family for bad credit finance is that your credit score doesn't play a role.
Finance with bad credit in order to buy a car is not impossible. If you're ready to get the ball rolling even with a difficult credit or financial situation, visit www.carsonterms.com today and get started!
Cars On Terms helps you get your car loan even you are a bankrupt, student or retiree. They are located in Brisbane, Queensland, Australia.