How much of a loan can I get pre-approved for?
Unfortunately, this number is as variable as the number of people in the US. Each person’s situation is unique and the bad credit car loan amount that you will get pre-approved for is based off a number of factors including your FICO score, your overall credit report, what type of issues are on your report, how recent they are, and much, much more..
How large of a down-payment money will I need (if I qualify for a loan)?
Again, the down payment amount is variable based on your situation and credit history. Generally speaking, the worse your credit, the greater the down payment will be required. In any case, you should consider at least 10% down whenever you are purchasing a vehicle.
Will inquiries into my credit history further impact my credit rating?
The answer is, “Yes they can.” Whenever you’re shopping around for an auto loan (or more credit in general), you should know that when creditors look up your credit report records, this causes an inquiry to show on your credit report. And inquiries can add up… which is often looked at in a negative fashion by lenders. For this reason, too many inquiries on your credit report can actually make getting a vehicle loan tougher.
Can I use my trade-in as money down for my vehicle loan?
You absolutely can! Please note, however, that additional down payment money may be required depending on your credit situation, how much “equity” is in the car you are trading in, what condition your trade is in, and if there is a loan on the trade in vehicle.
