What is a Bad-Credit Loan?

[sam]

Bad-credit loan works very similar to unsecured loans, except that instead of having no collateral, the vehicle is put up as collateral. In these cases, the terms may be very strict. Even one late payment may be grounds for repossessing the vehicle.

[smith03]

A bad-credit mortgage is a mortgage made to a person who has credit score that is considered poor and would likely be turned down for more conventional loans. These types of loans may be unsecured, short-term loans such as a payday advance or a bad-credit mortgage for a vehicle. In most cases, the terms for bad-credit financial financing does not favor the borrower.