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Can I have two car loans?

Can I have two car loans at the same time? I just bought a new car for my son's 17th birthday. A few days later, in what I can only describe as the worst timing ever, my car started to have some pretty serious problems. I don't want to take away my son's car, but I need to be able to drive to work. Luckily, I am financially secure enough that I can afford to pay off another loan.

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Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“It is possible to have two car loans at once, but qualifying for the second loan will be more difficult.
The question you’ll really need to ask yourself here—and the question the lender will ask you, too—is whether or not you can realistically afford to have two car loans at once. Lenders will check your debt-to-income (DTI) ratio, which will be negatively impacted by your existing car loan.
Lenders will also look at your credit score, which will be slightly lower after taking out the first car loan. A lower score may translate into a higher interest rate on your second loan. But you can check out your credit history on a site like
Credit Karma
to make sure you meet the lender’s criteria.
Bear in mind that the second loan (if approved) will impact your credit now and make it more difficult to improve your credit score in the future, too.
If your car’s been acting up, you may want to look into roadside assistance.
Jerry
offers it at a great price. Membership provides you with industry-leading roadside assistance, including benefits like towing, lockout service, and a mechanics hotline for just $6.99 a month.”
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