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SHORT TERM AUTO LOANS are car loans in the Philippines made for the purchase of a new or used car and have payment terms of 12 months (1 year) up to 36 months (3 years). These types of loans are designed to help a consumer quickly pay off a loan obligation for a new or used car purchase. However, the payment amounts of shorter term loans can be somewhat high or burdensome for some. This generally offer lower interest rates than do longer term loans, thus, people with bad credit may be required to use shorter term loans in order to approved by certain auto loan lenders. Interest rates can be somewhat higher than normal as people with bad credit can sometimes be expected to”buy back their auto credit”. Short term loans enable a person with bad or poor credit, to re-establish his or her credit history.
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