Can I get three car loans under my name?
Is it possible to have three car loans under my name? My wife and I both have financed cars. My son is turning 16 soon, and I'm thinking about surprising him with a car.
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Answered on Jun 30, 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.
“Yes, you can certainly have three car loans under your name. There are no laws preventing you from doing so.
Getting approval may be a different story, even if you have great credit and a decent relationship with your lender.
As a general rule, lenders won’t lend to you if your debt-to-income ratio is higher than about 43%. To figure this ratio, just take all of your monthly debt payments and divide by your monthly income.
If you fall below 43% after the third loan, you should be fine, especially if your credit is good.
If buying a new car and adding a third loan seems like a stretch, you can look at buying a used car for your son.”
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