Would I qualify for a car loan?

Would I qualify to take out a car loan? I’m not sure how to figure out if I would even be able to take out a car loan, since I have a pretty low monthly income.

Answer
Even with a low monthly income, you can still qualify for a car loan! There are a few different qualifications that you’ll need to meet to get a car loan, such as:
  • A good credit score: It really helps to have a good credit score when applying for a car loan. Generally, a score of 600 or higher will get you a better loan. However, if you have bad credit, you can usually get a cosigner to help you qualify.
  • Steady income: You’ll usually need to provide proof of income to qualify for your loan. Even with a lower income, you could qualify for a loan if you have a low debt-to-income (DTI) ratio. Lenders use this to calculate risk and your eligibility for a loan.
  • Proof of identity and residence: You’ll need to provide documentation proving your identity and residence when applying.
  • A downpayment: Most car loans require a downpayment of some kind. Generally, the higher your downpayment, the better your terms.
When you apply for the loan, you’ll probably need to provide proof of insurance as well. Luckily, the Jerry app makes it easy to find an insurance policy that works for you! Just download the app and answer some quick questions to access a comprehensive list of competitive quotes. Choose your favorite and Jerry will help you sign up!
Liz Jenson
Answered on Nov 17, 2021
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