Bad credit usually stems from a lack of adequate cash flow, often one that was only temporary. Not having the money to pay everything on time means there was nothing available to tuck into a savings account. The result is when a vehicle finally breaks down and becomes impossible to repair, there is no easy way to purchase another. After all, many lenders are hesitant to provide finding to people with a history of slow repayments to other loans.

Without reliable transportation it can be difficult to get to work or manage other daily needs. This can lead to an increasingly difficult financial situation. Many people give up hope and resort to seeking rides from others, walking whenever possible or driving vehicles that are unsafe and unpredictable. Since this is not an unusual situation, some lenders are responding to the need by making it possible for people with less than spotless credit records to get a car loan. They understand that it is easier for hard-working individuals to catch up on bills and get their lives back on track when they can actually get to work on time every day and avoid the expense of public transportation.

With a poor car finance loan, the agencies provide funding to people who have black marks in their past that cause other lenders to turn them down. This could be a bankruptcy or just a record of slow payments. The only requirements are that the borrower must be employed, at least part time, and have an adequate amount of disposable income available to repay the loan. The loans can be used at any auto dealership, or to purchase a vehicle directly from the lender.

The process is fast and simple and the buyer is never required to provide any deposit amount when they sign the contracts. The loans will have a higher interest rate than a good credit loan, but that is to be expected. The companies provide a full disclosure of all financial information regarding rates, loan amounts and payment dates before a final decision is made. For many consumers this type of opportunity makes it possible to have their own vehicle again while working to repair their credit rating.