Finance Loans - Car Loans Under 21
What is meant by a 'bad credit' loan?
This is a loan for persons who have experienced financial difficulty at some time for instance, late or missing payments; court judgements and outstanding debts etc.
You will be labelled as having 'bad credit' and will probably find it an uphill battle and expensive to borrow money.
Though, there are sympathetic loan companies who will provide you with a loan in spite of the fact that you do have bad credit, hence the phrase 'bad credit loan'.
What is a 'sub prime' lender?
When referring to a 'sub prime' lender, this is a loan provider who lends money to those with negative or low / bad credit scores.
An ordinary customer of a sub prime lender is a person who finds it hard to borrow finances from the normal lenders.
This is because of them running into financial problems in the past resulting in a bad credit rating.
Sub prime mortgages are also known as Non conforming mortgages.
What is the meaning of a 'secured lender'?
A secured lender is a loan provider who guarantees or secures the loan money against your assets such as your property or car.
Interest rates on these sort of loans provided by secured loan companies are typically less expensive than those that are extended by unsecured loan companies.
This is as the secured loan company can take hold of your belongings in the event you ignore the payment conditions, however, the unsecured loan provider is not able to do so.
What is an 'unsecured lender'?
An unsecured lender is a lender who offers lending without requiring some manner of insurance (such as you house or car).
Unsecured loans should take less time to put in place however, it will cost you more in interest charges than a secured loan.
This is so because the unsecured loan provider is taking on a greater risk as if you ignore monthly payments, the loan company is not able to seize your belongings in order to recoup their money.