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Recently a survey in UK proves that half of the total car loans taken are subprime auto loans. These loans are easier to get than prime loans. These loans avail credit to the borrowers easily. Subprime auto loans are offered to those with low credit score. If your score is below 620 in the FICO credit scores, you are eligible for this loan. Check your credit rating from Equifax, Trans union and Experian also. It is better to keep a copy of your report.

These loans are the only way to purchase a car if you have a poor credit rating and do not have enough finance to purchase a car. There are bad and dishonest lenders in the loan market. If the lender asks for prepayment penalties do not borrow from him. Car loans and secured loans do not need any prepayments. Forceful arbitration is a sign of a dishonest lender. Adding 1%-4% of the amount of the loan in fees or points is normal. Predatory lenders can double the charges for you.

Subprime Auto loans can be find easily but getting a cheaper loan deal is little hard. The best way to get a reasonable loan rate is to shop around. Log on to internet and apply on different loaning websites. You can ask for free quotes from the lenders. Compare the interest rate and the loan term and you can take help of the loan calculators in calculating loan terms and interest rate. Then you can apply for the cheap deal and enjoy the car at low interest rate.

These loans are for the poor credit people. So it is obvious that the rate of interest will be high for this loan. If you shop around you can get a cheaper deal. But it is better to take a car which is affordable. Remember that you will have to repay the loan amount so think wisely before applying for the loan.

Kalvin Jason is proficient in the credit market because of a degree in finance from the esteemed University of Oxford. He has also done his masters in insurance management from the Risk Management Research Institute.To find online car loans, best car loans, quick car loans visit http://www.driversamerica.com