Bad Credit Auto Loans
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Identity theft could leave you with only one option for auto loans – bad credit auto loans
It's becoming a prevalent crime in the United States. No longer are would be criminals just hiding in dark corners waiting to snatch your purse or break into your home. A far more profitable crime is to actually steal your identity and literally go shopping on it! It's probably hard to believe that it can happen to you, but it can. It affects over 10 million Americans every year and wracked up $56 billion in debt in 2004 . If you allow your identity to be stolen you may only be able to take out bad credit auto loans when it comes to auto financing as they will have marred your credit score completely.
Of course it's not your fault, but as the debts have been wracked up in your name it's very time consuming to prove otherwise and can take months of hard work and lots of cash to rectify. If you need to buy a car using an auto loan during this time you may find that the only option open to you is bad credit auto loans.
Why can you only get bad credit auto loans?
- The identity thief may have, for example, made fraudulent transactions on credit cards, used your bank accounts and made them overdrawn or taken out loans and never paid them back.
- Once payments start to be missed the debt starts to accumulate; this will have a detrimental effect on your credit score and will be noted on your credit history file.
- Auto lenders will use your credit score as part of their approval process and if your score has plummeted then the only options open to you are bad credit auto loans.
- Bad credit auto loans are specifically designed for people with low credit scores, CCJ's, bankruptcies or little or no credit history. Bad credit auto loans have invariably higher interest rates than standard auto loans as you have been branded a bad credit risk.
How can you protect your identity to prevent bad credit auto loans from being your only option?
Consumers need to be aware of how to protect their identities to stop more occurrences from happening. It is suggested that:
- Always ask why people need your social security number and never give it out if you feel unsure.
- Never carry around pin numbers for credit cards or address information that can enable the thief to link the cards to you.
- If your credit card bills don't arrive when they should phone the lender; you may find that the identity thief has changed the billing address to stop you from realising just how much in debt you are.
- Check your credit report at least three times a year to make sure your credit score is ok and that you don't land yourself with there only option of taking out bad credit auto loans.
- Always shred or rip up personal information such as bills and receipts that you wish to dispose of.