Bad Credit FAQ

How much will I get pre-approved for for?

The loan amount that you will get pre-approved for is based on a number of factors. You can get a general idea of the amount by first determining your Credit Profile and then using our Payment Calculator.

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How much money down will I need?

The down payment money amount that you will need is based on a number of factors. You can get a general idea of the amount by first determining your Credit Profile and then using our Payment Calculator.

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Can I use my trade as money down?

Yes! Additional money, however, may be required if there is a lien on the automobile that you are trading.

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What type of car can I get pre-approved for?

The typical auto loan from Tom Bannen is for a new, one year, or two year old car with less than 50,000 miles. Nearly every vehicle financed through Tom Bannen is eligible for extended warranty protection so you won't have to worry about unexpected repairs.

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Will inquiries effect my credit rating?

If you're shopping around for an auto loan or more credit, you should know that when creditors check your credit, it places an inquiry on your credit report. Inquiries can add up, which is often interpreted negatively by creditors. For this reason, too many inquiries can actually make getting an auto loan more difficult.

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What are the minimum qualifications to get pre-approved?

There are no minimum qualifications to pre qualify! Each auto loan application is evaluated based on the credit profile and equity position. An applicant with previous good auto credit, for example, may not have to meet income and job time requirements; whereas an applicant with a recent repossession would.

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I've had a repossession less than a year ago. Can I still pre qualify?

If the repossession was not included in a bankruptcy and there is still a balance on the account, you can still pre qualify. Greater money down requirements will apply and vehicle selection will be limited to newer cars that are still under factory warranty.

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I've had a bankruptcy. Can I get pre-approved?

As long as the bankruptcy is discharged, or you have an Authorization to Incur Debt from the bankruptcy trustee Tom Bannen can help.

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I'm currently in a Chapter 13 Bankruptcy. Can I pre qualify?

Yes. However, it may take longer to process your loan. You have to obtain an "Authorization to Incur Debt" from the trustee of your bankruptcy. This normally takes two to three weeks. Consult your bankruptcy attorney.

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I've never had credit before. How can I get pre-approved?

Tom Bannen has several First Time Buyer Programs.

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Will Cosigners help me get pre-approved?

A Cosigner may be considered for a Buyer who does not comply with all the credit requirements. The income of the Buyer, however, must meet all the income and budget guidelines without reliance upon the income of the cosigner.

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Can I use an auto manufacturer's employee discount (A-Plan, GMS)?

Yes! Let your Tom Bannen Auto Loan Specialist know that you qualify for the discount and it will be applied toward your new car purchase.

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Should I find a car first before applying for an auto loan?

We recommend that you consult with one of our auto loan specialists first. They can determine how much you qualify for before you start shopping. This method will increase your chances of approval and decrease the number of inquires on your credit report. Inquires may have a negative effect on your credit rating.

For Example: You decide to buy a new $40,000 Cadillac at a dealership without an Tom Bannen loan pre-approval. The dealer may keep submitting your application until it is approved or the dealer has exhausted all their lender resources. On the other hand, your Tom Bannen Auto Loan Specialist will first determine if you qualify for the Cadillac. If so, your loan package will be submitted. If you don't qualify you'll find out without numerous inquires showing up on you credit report.

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I've been turned down before. How can Tom Bannen help?

At Tom Bannen we use state-of-the-art technology that evaluates your credit profile, available inventory, income, as well as debt factors. Our process ensures that each application has the best possibility of approval prior to submission.

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What are the monthly payments?

Monthly payments are based on your credit profile and the vehicle you are purchasing. Newer, lower mileage cars qualify for extended terms. The best payments are on less expensive cars that have under 50,000 miles. If you have an idea of the amount you want to finance and the interest rate you will qualify for use our Payment Calculator to estimate your payments.

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What are the interest rates?

A very good question for which there is not a direct answer. Rates are based on your credit profile and the equity position of the loan. Tom Bannen is full spectrum. We will get you the best rate based on your credit profile. The higher your credit rating and down payment the lower your rates will be. Also, the model year of the vehicle plays an important role. Rates generally increase 1 point per model year. The older the car, the higher the rate.

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