$40,000 Auto Loan

by Anonymous

Question: Looking for a $40,000 auto loan...My credit scores are Equifax 702, Experian 717, Transunion 698. My husband and I both have steady jobs for several years, but we are not sure if we will qualify for roughly a $40,000 loan. Do you think we will have trouble getting approved for a new car loan in that $40000 range.



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Answer: Hi. I don't know enough about your credit situation and or monthly income to say for sure, but based on credit scores alone you'd be a good candidate for an approval.

Lenders are going to look at your past comparable credit and your overall credit depth. If this is your first auto loan or this loan would be four times the size of your largest loan, then that would make it a bit more difficult.

If you make a solid monthly income and the payments would be easy for you to make (lenders like payments 15% or less of your total gross monthly income) then they may stretch to give you an approval.

Being that you are buying a new car helps your situation, because manufacturers will have a lending source that usually will do a little more to give an approval, because it is tied to you buying one of their vehicles.

On top of these factors, if you can put some money down (like 10% or more) that will always look good to the lender as well. This shows commitment on your part, but it is not always necessary.

Good luck to you and I hope this helped to shed some light.

Take care,
Justin

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