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?

Answer
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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Eric Schad
Answered on Mar 08, 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.
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