Can a car loan prevent you from getting other kinds of loans?
I just got approved for a car loan, but I'm wondering if this debt will hurt me in the future when I'm applying for things like a mortgage.
Answer provided by
Eric Schad
Answered on Mar 12, 2021
A car loan doesn’t necessarily disqualify you from other loans; it’s more dependent on how much debt you have overall. In most instances, lenders won’t approve loans such as a mortgage if your debt-to-income ratio is higher than 43%. So if you’re thinking about buying a home in the future while also purchasing a car, consider paying down other debt such as student loans or credit cards.
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