Second car loan ?

[Anonymous]

Hello I was just curious to see if anybody had any info or any prior experiences on having 2 car loans out at once . If it is even possible I have pretty good credit at about 750 or higher . I have 16k left on my car loan I got last year but was looking to get a 2nd vehicle for my wife . She doesn't have great credit so is there anyway I could get a second loan with both of our incomes ? My only other debt is credit card debt

[Anonymous]

It's certainly possible for someone to have two car loans.

My guess is that if you want the lender to count both of your incomes, then the lender would want to see both credit scores, in which case the lender would typically take the lower of the two.

If you want to take out the 2nd loan in your name only with only your income, then it would need ti be plausible for your income to support both car payments (along with expected rent/mortgage and other cost of living)

We don't know what you current payments are (credit cards, car loan, rent/mortgage, etc.) nor what the cost of the new car would be, nor what your income is, so it is hard for people here to say.

Any particular reason you couldn't sit down with a couple lenders and ask them?  You could give them your scores, income, and bills and ask them if they can give you a general idea.

[Appleman]

Welcome to myFICO. Lots of great tips and free advice here. But always remember to do what works for you.

You may have as many car loans as your credit profile can support.

You have a good track record with one auto payment (assuming no lates etc).

Your credit score at 750 is great. Each lender will use differing scores, but it sounds like you will have good scores all around.

Calculate out your Debt to Income ratio DTI. For auto loans they will usually have no problem provided you are below 40%. The easiest way to do this is to sign up for the free credit sesame account. On the free version they will show you what your DTI currently is (this will require you to put in your annual gross (pre-tax) salary and it will pull the payments that currently show up on your credit reports. (If you are renting, you will need to do a manual calculation as CS will only pull in current mortgage data)

Example. Current income $45,000. x .4(40%) $18,000 / 12 months = $1,500 a month available for paying bills and keeping DTI below 40%. 

Rent $600, Auto Payment $400, Credit card Payments $200 = $1,200. In this hypothetical example you would have $300 available for another car loan. And, each lended will have differing criteria and some will readily go above the 40% DTI

You could use your wifes income but that will bring her credit into play with the lender. Honestly not sure how that will alter you rate.

Also, try Capitalone Auto navigator. This allows you to see if you would qualify with Cap1 and it is only a SP (soft pull) of your credit (no negative effect).

Also, you may want to look into PenFed credit union. For one Equifax pull you can get membership and any other products that your credit profile will qualify you for, For example you could approval for an auto loan, possibly refinance your current auto loan and even a credit card. Just a thought.

Good luck and please check back in with us. Sharing your experiences will help others I am sure.

[Anonymous]

Certainly if you have the income and credit you can get two loans at once.  I have seen a couple of times here where a couple gets two BMW's or Lexus' , in those cases they went through the captive lenders.  I suspect that Penfed would do two loans under the same circumstances also.  

[Anonymous]

Thanks for he replys guys. I Calculated dti looks like I'm at 34% which gets me Close. I might have to include wife's income. I'm mostly just looking to get lower apr current car loan is at 1.75 and would like to get about the same this time around thing is I'm looking to get something around 40k. I was going to give my wife my car and get a truck is there anything I can do in that aspect? Current car payment is 290 and rent is 950 between me and the wife and only credit card payment is about 40$. Income for both of us is around 35k ea .

[Anonymous]

Forgot to mention I used the autonav from capital one for pre approved for 27k?

[Anonymous]

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@Anonymous wrote:
Forgot to mention I used the autonav from capital one for pre approved for 27k?

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I always strongly reccomend the credit unions, they consitantly offer the best rates.  Back during my rebuild Capone gave e 8.5% and NFCU a week later gave me 4.29%,  we see examples like this here all the time.

[Anonymous]

I agree will definitely do but was just trying to get an idea if I would even get approved with capital one auto nav it's soft inquiry and won't hurt your credit Score to get an estimate of what you can get approved for .

[Anonymous]

You wouldn't be able to consider her income without her going on the loan most likely, However many bank's will generate an interest rate based off of the higher credit score. Credit union's like Scott Credit Union (located in illinois and they service, many of the surrounding states) will use the higher score of the two to generate an interest rate, however she will have to qualify as well. What I mean by this is, if you are a strong 750 and she is a very weak 500 score they may not approve the loan, however if she isn't necessarily as bad as you think you should be in good shape.

as other's have said, you can have as many auto loan's as your income/credit profile will support, I have personally seen individuals with 6 open auto loan's but they had the credit profile and income to support it.

My advice would be to see if you and your wife can get pre-approved through a credit union with a joint application and go from there. I don't think your income alone support's a second car loan considering your DTI and the type of loan (40k) you are looking for.

By finding a lender willing to approve you both on a joint loan it would help her credit rebuild as well with an open installment loan with positive payment history.

some of your national captive lenders (well's fargo, ally, us bank, commerce, etc) will determine an interest rate based on your interal score with that particular lender so if your wife's credit isn't good at all you could potentially be placed in a lower tier level generating a higher rate, this is where credit union's and other lender's come in handy.

[Anonymous]

in addition,

Your Capital One pre approval if it is just in your name could be useless. Once you get to the dealership there is a very good possibility that they generate a stipulation for the dealer requesting you to trade your current open auto loan if you don't qualify for a second unit.