Car buyers in the Roswell GA area are constantly searching for a used car at the best price possible. One of the most common questions that people ask when they are looking for a car is how much of a loan can I get? Or better phrase, how much will a car lender he willing to lend me? Although there is no simple answer to this question will attempt to explain all of the different factors that determine exactly how much a lender will be willing to give you for a car.
When it comes to obtain in an automotive loan the first factor that most lenders will look at is your past credit history. For some, this can be a dealbreaker if you have bad credit while for others they are willing to take on such a loan at a higher interest rate. The first question that you will ask yourself is how good is my credit. If you have no credit then you stand a better chance of getting a loan and then someone with bad credit. However, some lenders will not lend to someone with no credit history because this can be a risky maneuver as credibility is unpredictable.
If you have fairly decent credit the next criteria that a lender will look at is your monthly income. The lender wants to know if you are able to afford a monthly car payment or you are at risk to default on your loan. Keep in mind that one who earns a high income may not qualify for a loan due to excessive debt. This brings me to my next point about debt load and receiving a loan.
Not only will a lender look at the amount of money that you bring home each month but they will also look at your other debt such as current car payments, rent, student loans, child support, or any other monthly obligations that you may have. Most banks will weigh your debt ratio against your income while looking at your past credit history. As you can see, all of these factors are what determines exactly how much you are able to borrow from a lender and that would interest rate. There is no simple answer to how large of a loan can I get you’ll simply have to shop around and see what you qualify for.
For example, an individual who makes a yearly income of $25,000, pays $600 per month in rent, and does not have any other obligations may be able to get a loan for $20,000 or more. On the other hand, someone who makes $15,000 per year, pays rent of $800 per month, as one current car payment of 300 per month, and pays $400 per month in student loansand has bad credit may have a difficult time finding a lender that will love and a substantial amount of money.lenders will determine your loan amount and interest rate whenever they verify your income and check your past credit history.