Do lenders impose limits on how much you can get for your first car loan?
I'm about to apply for my first car loan. As a first-time applicant, will I face borrowing limits?
No, lenders don’t impose limits on your first car loan just because it’s your first one. Instead, they weigh other aspects just as they would for buyers that have had two, five, or even 10 loans in the past. These include:
- Debt-to-income ratio
- Credit score
- Current income
- Prior relationship with the lender
All the aspects mentioned above will play a role in how much a lender is willing to give you toward the purchase of a new or used vehicle.
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