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What do I need to successfully qualify for a car loan?

I want to buy a car with a car loan, but I'm not sure how to do it. What do I have to have to qualify for a car loan?

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Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
How to successfully qualify for a
car loan
will vary from lender to lender, but in most cases, you will need:
  • A decent credit score and established credit history
  • Proof of income that verifies you can afford the loan
  • A debt-to-income ratio of 43%, which signifies that you aren’t taking on more debt than you can afford
If all three of these check out, you can likely qualify for a car loan. However, some lenders may require that you get a cosigner in order to qualify. This is a person with good income and great credit who agrees to take responsibility for the loan if you become unable to pay.
If you have credit history but a poor credit score, you may be limited to loans from a subprime lender or
buy here pay here
dealership. (Warning: these loans will come with high interest rates.)
You’ll also need to show proof of full coverage car insurance at closing. To facilitate this process and get the best rate possible, use the
Jerry
app. The average Jerry user saves $879 a year on car insurance payments!
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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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