Bad Credit Auto Loans are a very common type of financial liability, used by many individuals to purchase automobiles. The financial institution, however, is given security - a lien on the title to the automobile - until the auto loan is paid off in full. If the borrower defaults on the auto loan, the bank would have the legal right to repossess the automobile and sell it, to recover sums owing to it. This is just one type of a secured loan that if the auto loan customer refuses to pay the remaining balance of the loan and interest concurred; the bank will come looking for their automobile.

Appling on-line for a bad credit auto loan usually has its perks.

• Great low rates*
• Up to 110% financing (under certain terms)
• .25% rate discount when you apply online
• Terms up to 7 years (But not recommended for bad credit customers.)
• Pre-approvals (No waiting at dealership)
• Loan protection insurance (A must when job security is low.)
• Refinancing available (Only when previous auto loan has been paid as promised.)

With an unsecured loan the bank would have nothing to come after, but your credit would be damaged and the collection agency would be hounding you for a very long time.

With secured Bad Credit Auto Loans the car dealer initially receives an amount of money from the lender, which the customer agrees to pay back, in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt. The financial market, term and the customers previous credit history, determines the interest rate on the loan.

* APR = Annual Percentage Rate. Interest Rate quotes are the lowest rates possible for qualified borrowers and are subject to change. Qualification is based on term (as applicable), credit history, debt, and the ability to repay. Your rate may vary. All Bad Credit Auto Loans subject to credit approval.