Poor credit auto loans exist for people who have imperfect or poor credit. Someone’s credit is poor if their credit score is less than 630. Having a credit score that is less than 630 can affect your life in so many ways. It can affect your ability to get approvals for auto loans, it can determine how much you are expected to pay for a rate on the loan that you have applied for, and lastly, it can determine how employable you are – your credit rating can greatly affect your ability to get a good job.
There is a marked difference between having a poor credit score, a bad credit score and having no credit at all. A poor credit score is almost the same as or can be likened to having a bad credit score. Having a poor credit score can be caused by several factors some of which include having huge unpaid debts, having multiple credit accounts and having huge credit card balances.
Having bad credit is quite different and worse than having a poor credit score. Having bad credit can be likened to being bankrupt. It simply means that you have a bad credit reputation. Therefore, you cannot be loaned money because your loaner or creditors believe that you would shaft them in the end.
From the perspective of the loaner, giving out an auto loan to a customer who has a poor or imperfect credit score is a high-risk investment. The chance of being able to get back your money is very slim. As an auto loans applicant or someone who wants to apply for auto loans, having poor credit exposes you to higher rates and stiff repayment plans. Besides affecting and determining how much you pay as interest rates, having a poor or imperfect credit score can also prevent your application for auto loans from getting approved.