Three Reasons Why Taking Up A Bad Credit Auto Finance Loan Is A Grievous Mistake

It has been said over a million times by many financial experts that taking up a bad credit auto finance loan is one of the greatest and dumbest financial mistakes that one can ever make. However many unwise auto finance loan consumers have refused to listen and take heed to this simple advice. Below are three concrete reasons why most financial experts are against you taking up a bad credit auto finance loan.

High Interest

Bad credit auto finance loans are often time accompanied by high APR or interest. Thus, anyone who takes up a bad credit auto finance loan would be compelled to pay the high interest that accompanies it. Taking up a bad credit auto finance loan that comes with high interest has a way of robbing you and depriving you of your hard-earned money. As an individual, when you take up a bad credit auto finance loan, you usually spend more that what you ought to have spent if you had good credit.

Stiff Repayment Terms and Conditions

Bad credit auto finance loans are often times accompanied with stiff repayment terms and conditions. For instance, as an individual when you take up an auto finance loan, you might not be given any credit free period before the lender starts charging you interest on what he has loaned you.

Short Repayment Duration

Bad credit auto loans are often time accompanied with very short repayment duration or timeframe. For instance while a normal auto finance loan might have a repayment duration of 7-8 years, a bad credit auto finance loan might have just 3years as its maximum repayment time duration.

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