Can I get approved for a car loan if I have $60,000 in student debt?

"I just graduated from college. I already have a job offer for $52,000 a year.

But I'm still worried about how much student debt I have ($60,000). Can I get approved for a car loan with that much debt?"

Answer provided by
Eric Schad
Answered on Jun 03, 2021
“If your credit score is good, the next thing the lender will look at is your debt-to-income ratio on a monthly basis.
This compares how much you make a month (in this case, $4,333) to your monthly debt payments.
Let’s say you have to pay $500 a month toward student loans and your car loan is $500 a month. Add in rent for about $1,000, and you’re at $2,000.
To get approved, you usually have to have a debt-to-income ratio of 43% or less. In this case, your rate would be 46%, which means you probably wouldn’t qualify.
Add in the cost of full-coverage car insurance and you’re looking at another couple hundred.
The best thing you can do is save money and pay cash for a cheap car. In the meantime, pay down your student debt. In a few years, you can treat yourself to a nicer car that’s within your budget.”

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