How large of a car loan can I get pre-approved for?
Unfortunately, there really isn’t a straight answer to this question as the number is incredibly variable. The fact of the matter is, each person’s situation is unique to them… and the auto loan or bad credit car loan amount that you will get pre-approved for is based off a number of different factors. These factors include your FICO score, your overall credit report and the type of issues that are on your credit report, how recent those issues are, and more.
How large of a down-payment will I need to make on my auto loan assuming I qualify?
Just like the amount of loan pre-approval, the down payment amount is variable based on your individual financial situation and credit history. And generally speaking, the worse your credit is, the larger the down payment will be required on your auto loan. In any case, you should consider putting at least 10% down whenever you are purchasing a new car.
Will inquiries into my credit history negatively impact my credit rating?
The simple answer is, “Yes, credit inquiries can negatively impact your credit rating.” Whenever you are shopping around for a car loan, you should know that whenever creditors look up your credit history report records, this causes an inquiry to display on your credit report. And unfortunately, inquiries can add up. This is often looked at in a negative light by lenders. Because of this, too many inquiries on your credit report can actually make obtaining a car loan or bad credit auto loan more difficult.
Can I use my trade-in vehicle as a down-payment for my auto loan?
Absolutely! You should note, however, that additional down-payment money may be required. This is dependant on your individual credit situation, how much “equity” is in the car that you are trading in, the condition of the vehicle you are trading in, and if there is a lien on the trade-in vehicle.
Will a cosigner help me get a car loan?
A cosigner can be of significant benefit to you when applying for an auto loan. This is especially true if you are in a situation of having bad credit or no credit. Note, however, that even if you have a cosigner you will still be required to meet the standard income requirements of the car loan you are applying for.
I had a vehicle repossessed less than a year ago… can I still pre-qualify for an auto loan?
The short answer to this question is maybe. If the car repossession was not included in a bankruptcy, and there’s still a balance on the repossession account, you can probably still pre-qualify for a bad credit car loan. Note, however, that you will most likely be required to make a larger down payment. In addition, your vehicle selection will most likely be limited to newer cars that are still under factory warranty.
Is it possible to get pre-approved for a car loan or bad credit auto loan with a bankruptcy in my past?
If you have received an “Authorization to Incur Debt” from the bankruptcy trustee, or if your bankruptcy has been fully discharged, you most likely will be able to get approved for a car loan or bad credit auto loan. That being said, you’ll need to find an appropriate lender or lender-dealer. Liberty Auto Loan is a consumer connection company that can help you find a lender or dealer affiliate partner to meet your auto finance needs.
I’m currently going through a Chapter 13 Bankruptcy. Can I still qualify for an auto loan?
The short answer is yes… in many cases you can still qualify for an auto loan or car loan with bad credit even if you are going through a Chapter 13 Bankruptcy. That being said, it may take longer for your bad credit car loan to go through processing because of the Chapter 13 Bankruptcy. Further, you will need to obtain an “Authorization to Incur Debt” from the trustee of your bankruptcy, which will generally take a week or two to get hold of. Finally, and most importantly, you should always consult your bankruptcy attorney on matters such as auto financing with a Chapter 13 Bankruptcy. While here at Liberty Auto Loan we do our best to provide you with quality information on financing your vehicle and purchasing a car, we are not a financial consulting company.
Can I get approved for a car loan if I have no credit history?
Yes, you most likely can! However, you will probably need to come up with the cash for a large down payment or find a cosigner in order to get approved for an auto loan, no credit auto loan, or bad credit car loan. That being said, you should know that there are a significant number of lenders and dealers across the U.S that are willing to help people with no credit find the car and auto financing they need.
How can I determine my monthly auto loan payments?
As with any other type of loan, the monthly payment on an auto loan or bad credit car loan is determined based off your Credit Profile and the vehicle you decide to purchase. It is important to know that newer, lower mileage cars are better because they usually qualify for extended terms. Extended terms are what most bad credit buyers need. In general, the best payment options come from less-expensive, newer model vehicles that are under the 40,000 to 50,000 mile range. To further understand and determine your monthly payment, you should consult a payment calculator or car loan calculator. These calculators are available on many web sites on the Internet. And here at Liberty Auto Loan, we have an auto loan calculator that can help you figure out your loan payment.
What kind of interest rate can I expect with a bad credit auto loan?
Unfortunately, there really isn’t a short or simple answer to this question. Auto loan interest rates are based off a rather wide range of factors. These factors include your general credit profile and how much equity is associated with the auto loan. For the most part, the larger down payment you make on a car loan, and the higher your credit rating is, the better, or lower, the rates you will receive on your auto loan. It is also important to know that the make and model year of the car you want to buy also plays an important part in the interest rate you will get on your vehicle loan. As an aside, interest rates tend to increase by approximately one point per year of age on the car. So the older automobile is, the higher the rate you’ll have to pay.