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How many car loans am I allowed to have?
I want to get a fifth car loan on a car for my wife. Is this possible?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
No law governs how many
car loans
you can have at any given time. However, you will need to prove that you have sufficient income and a good credit score to qualify for each additional loan.The biggest hurdle to qualifying for multiple loans is your debt-to-income ratio (i.e. a ratio of your monthly debt to your monthly income, including the potential loan). In most cases, lenders won’t approve you unless your ratio is 43% or below, although some may require as low as 30%.
If you do get approved, making a large down payment can help lower your monthly rates. Reducing other sources of debt, like outstanding credit card balances, can also help you pay off the new loan more quickly.
Want to free up some extra cash for your multiple loans? Use
Jerry
to compare quotes from up to 50 top insurers and switch to a cheaper policy with the same coverage.View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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