Can I have two open car loans?

My partner's car finally went kaput on us and I will have to take out another loan to get her a new one. Can I have two open car loans at the same time?

Answer
Cars conk out at the worst times! Yes, depending on your current and future financial situation, you can have two open car loans at the same time.
When you apply for a car loan, the bank will look at several factors, including some of the following:
  • Income
  • Credit score
  • Debt to income ratio
  • Past auto loan payment history
If the bank feels like your income can handle another loan, you won’t have any problems at all. However, if you are currently paying on several loans and credit cards, you may need a co-signer to help finance the car.
Before starting the process, think about what big financial decisions you and your partner will be making in the immediate future. For example, if you are in the process of buying a house, you will want to wait until after you close on the new home to apply for a car loan. Applying for a car loan will negatively impact your debt to income ratio and delay your home loan.
If you decide to apply and get approved, make sure you’re getting the best interest rate on your loan. Download the Jerry app and see if they can find you a better rate through refinancing. On average, car owners pay $85 less every month by refinancing their auto loan.
Shannon Martin
Answered on Oct 27, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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