If I make about $550 a month, will I have trouble qualifying for a $12,000 car loan? That's more than enough money to make the monthly payments, but do banks/dealers consider your monthly income in offering you loan? (ie. Will they deny people for not making a certain amount?)
2006-09-16 13:19:36 · 7 answers · asked by timopictures 1 in Cars & Transportation ➔ Buying & Selling
Of course they consider your income when qualifying you for a loan!
A $12,000 loan at 10% for 5 years will cost about $255.00 a month. It's not very likely that you'd qualify if you're only making $550.00 a month. Most lenders want to see debt service of no more than 35% of gross income. That's rent or mortgate plus all credit obligations. In your case, that's $192.50 a month. Even if you live at home and pay no rent, you'll be hard-pressed to qualify.
2006-09-16 18:40:38 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Your income is going to be a consideration when you are going to apply for any loan.
When you apply for a loan, your income will be weighed along with your cedit rating, payments due on existing debts, and other financial obligations such as the cost of your housing, utilities and insurance.
As another poster stated, the amount your down-payment can sometimes be used to offset other negatives on your application.
Best of luck to you.
2006-09-16 13:32:03 · answer #2 · answered by goicuon 4 · 0⤊ 0⤋
do no longer positioned it in a CD. CD stands for Captive money. you won't have the ability to touch it without paying a penalty on it. on a similar time because it extremely is non-needed mark downs, you by no potential be attentive to whilst an emergency would upward push. a million. in case you do not have one, take approximately 3-6 months of your gross income out of the 20k and positioned it in a sturdy money marketplace account. the floor floor of any monetary house is a completely funded emergency fund. 2. Take $4,000 of notwithstanding is left and in case you do not have a individual Retirement Account set up yet, initiate one*. Preferrably a Roth IRA considering they are after-tax money. *seek for suggestion from a monetary expert by using fact there are income limits in case you presently have a 401(ok). 3. For something of what's there, initiate finding at extra liquid investments consisting of shares, bonds, and mutual money. All 3 of those are made for long term making an investment, i.e. non-needed mark downs, and have constructive factors that enable to money out with no need to pay a penalty, finding on what you decide on for. There are some municiple bonds which could pay upto 8% pastime or probable extra which would be tax unfastened. on a similar time as the CD is going to guarentee you a cost that different products can not, it robs you of flexibleness. finding on your age and danger convenience, you will desire to in all probability be thinking extra long term. seek for suggestion from a monetary consultant and are available across all your recommendations, no longer in basic terms what the monetary business enterprise can provide.
2016-10-01 01:25:48 · answer #3 · answered by ? 4 · 0⤊ 0⤋
well it depends on the finance company and your credit score also is a big issue.I make just over $1200 a month and was approved for a $6000 loan.There are some cases where you will be denied for not having enough income.
2006-09-16 13:34:36 · answer #4 · answered by littleangel232000 1 · 0⤊ 0⤋
most of the banks and finance companies require your total money going out at no more than 50% of your gross income,
2006-09-16 21:12:26 · answer #5 · answered by OMAR G 3 · 0⤊ 0⤋
It depends on where you live and age, and down payment. If you are living at home, and have a great down payment, maybe they will sell to you.
2006-09-16 13:24:26 · answer #6 · answered by Life after 45 6 · 0⤊ 0⤋
Check out this site..... http://autos.yahoo.com/finance/index.html;_ylt=AmDFGa6RBTFRcq0gBvhW8LJHc78F
2006-09-16 15:09:15 · answer #7 · answered by Papa 7 · 0⤊ 0⤋