Can I get a car loan if I'm 22 and make $500 a month?
"I need a car to get to work. I'm 22, and I make $500 a month part-time. I don't really have any credit built up.
Will a bank approve me for a car loan?"
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Answered on Jun 18, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
“Chances are that a bank won’t approve you for a loan, or at least without a cosigner. If your parents can cosign and they have good credit, you might be able to get a car loan.
With that said, you might be underestimating the costs of car ownership through financing. Not only do you have to pay the car loan every month, but you also have to pay for full-coverage car insurance that’s required by the lender on every car loan. At your age, you can fully expect to pay $300 or $400 a month on insurance alone.
Add insurance costs to your car note, and it’s very unlikely that you can afford a car loan. Save up money instead and pay cash for something that’s in your budget.”
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