subject: Bad Credit Loans Loan In Canada Clarification Of Bad Credit Auto Loans Part Sixty One [print this page] Bad Credit Loans Loan In Canada Clarification Of Bad Credit Auto Loans Part Sixty One
People who apply for bad credit auto loans on behalf of their children need to know that they are liable for the payment of those bad credit auto loans in full and not their children. Legally bad credit auto loans cannot be given to children and parents who have bad credit records and want to buy cars for their sons and or daughters will need to apply for the loan and contract it in their name and then use the cash from the loan to buy the respective car. The parent is responsible for the entire payment of the loan whereas the child is responsible for the reckless and dangerous driving of the car bought by the loan. Children found driving dangerously or recklessly will obviously have points placed on their respective driving licences. The disadvantage of this for the parent, who is paying the loan, is that the insurance rates for the car will increase and the parent's credit report scores will decrease in direct proportion to the number of points lodged against the child's bad driving habits.
Parents paying for their child's bad credit auto loans will then receive higher interest rates on their loans as a direct result of the points placed on the child's driver's licence for bad driving. This is where it becomes a huge financial disadvantage for parents who already have a bad credit record. The purchase of the car with the money provided by the bad credit auto loan is working to the financial disadvantage of the parent who has children with bad driving habits that are penalised by the traffic authorities and which damage the already bad credit score of the parent even further. This applies to the child having an accident with the car as well. If the car is a right off the parent still has to see out the payments until the whole bad credit auto loan is paid back, irrespective of whether the car is on the road or not.
It is therefore generally not a good idea for parents to apply for and be granted bad credit auto loans which are used to purchase cars for their children. What happens in the long term for the children who have had their licences penalised for bad driving and or have had an accident with the car that their parent have indirectly bought for them through the cash supplied by bad credit auto loans, is that these children will also find it very difficult to obtain a bad credit auto loan for themselves in the future. The points placed on the child's license causes a bad credit record for the child even if the parent is paying off a bad credit auto loan for the purchase of the car. So bad driving habits and or accidents in cars driven by children will get points against their licence so that when they legally become adults their previous driving behaviours as children affect their financial ability to obtain bad credit auto loans in the future.
To read about the various types of Canada loans available at BHM Financial or to apply directly online for a Canada loan in any one of the Canadian provinces namely, Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan, visit the loans in Canada website at bad-credit-loan-in-canada.com. You can also text chat with a BHM Financial loans consultant now, online, about your Canada loan, by accessing this link Canada loans text chat.
To learn more about the different kinds of Canada loans offered by BHM Financial visit Bad Credit Loans Loan In Canada Clarification Of Bad Credit Auto Loans Part Sixty.
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