Factors That Determine a Car Loan Amount

The amount of a loan that you are eligible to borrow depends on different factors including: your credit score, down payment amount and the specific vehicle you are buying. Knowing what these factors are ahead of time can help you get the loan you want.

The first and most important factor is your credit score. The higher your score, the more you usually can borrow and the lower your interest rates will be. Lenders presume that the better your credit score, the more likelihood of you paying the loans back as scheduled.

It is also important to take into account on how much down payment you have. If you have a significant down payment, you may receive a larger loan amount.

The specifics of the vehicle you want to purchase also determine loan amount. Specifics include whether the car is new or used, if used what is the age and condition, blue book value, make and model, etc. All of the specifics factor into how much you will receive in a loan.