So here is a question people are probably wondering but never ask…can I get two car loans and the answer is yes! But this is contingent on the fact that your credit score is good enough, and your debt to income ratio is within the required limit; then the answer is yes! If you have the income and credit history to easily support the second payment you should be fine. If it makes things noticeably tighter, you may see a higher rate on the second loan. If you don’t have the income/credit you may not be approved.
It is all going to depend on your debt to income ratio. There would be no problem having a second auto loan as long as you can afford it and that is what the lenders will want to see. If your debt to income is good enough that you can afford another loan, then you may want to use all of your money toward the next car as it will improve your chances of approval. As far as your credit score, it would decrease by adding more debt if you open another loan, but not a big deal as your score will come back once you pay down the balance, depending on your credit profile, you may not lose that many points by adding a new loan. Do some reading on how to figure out your debt to income and take it from there.
Lenders will generally not give you another loan to pay off the first one, but they might extend the terms of the first loan or increase the amount if you call them and explain your situation. The problem is that issuing the second loan is not necessarily an act of kindness. You will now will undoubtedly, plunge yourself further into a debt spiral you may not get out of.
While creating a budget and figuring out where you can cut costs are you two main goals, if you are considering extending your original payday loan, one can assume that you are in a precarious situation and need money quickly. Rather than trying for another loan, consider other options:
- Provide the option to run errands or perform odd jobs for family, friends, and neighbors.
- eBay, Let Go or Craigslist: Sell anything from books to clothes to toys to car parts to car parts online.
- Uber, Uber Eats or Lyft: If you’ve got a car, put it to work with theses service that’s an alternative to taxis and food delivered.
A loan consolidation company will: