The Different Types of Bad Credit Car Loans

April 20, 2011 - PRLog -- Some years ago it was virtually impossible for people rated as high risk borrowers to get any form of funding from lenders. The fact that many lenders have a system for sharing credit information made it even harder to shift from one lender to another for credit. Such people were treated as outcasts in the financial circles. Things though have gradually changed and this formerly feared group is getting attention than ever before. Bad credit car loans are one of the many forms of credits that have been customized specifically for people rated as high risk borrowers.

When applying for bad credit car loans (http://www.crestcarloan.com) you have the option of going for either the secured or unsecured type. Secured bad credit car loans require the applicant to surrender ownership of some personal assets to the bank or lender until the loan is paid back in full. The terms in such a pact states that if the borrower breaches the agreement by failing to repay, the lender may liquidate the assets used as collateral to recover the unpaid money. Some of the assets that are commonly used as security include homes, pieces of land, cars and even policies.

Unsecured bad credit car loans (http://www.crestcarloan.com) on the other hand are the opposite of the secured type. In this arrangement the borrower does not pledge any assets as security. Usually a cosigner who is at times called a guarantor signs alongside the borrower. Such a person must be a highly respected person with an excellent credit rating.

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Crest Car Loan is your best source for car loans or bad credit car loans online. More information about Crest Car Loan can be found at http://www.crestcarloan.com.