Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Auto Loans
Profile Image

Question By

0 Contributions
0 People Helped
Estimate amount of loan I will be approved for based on credit score.
Is there a way to estimate the amount of a car loan I may be approved for based on my credit score? I see a lot of information about the interest rate but is it possible I won't even get approved the amount I would like/need?

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

All Responses

Page 1 of 1   Previous | Next
Top Contributor
50 Contributions
200 People Helped

More than just your credit score.

Helpful to 74 out of 81 people

Your credit score IS a big part of getting a bank approval. 

If your FICO is 700 or higher, you're gold.

If your FICO is 640 to 699, you're silver.

If your FICO is 600 to 639, you're bronze.

If your FICO is under 600, you're pretty much lead.

Regardless where your FICO falls, there are four (4) other things that will determine the amount of your loan.  The first would be your income and job history.  The second would be cash down.  The third would be cash down.  The fourth would be cash down.

The more of #2, #3, and #4 you can do, the better the odds.  This is going to hold especially true if you're young looking at cars over $29K or if your score is marginal. 

As far as estimating what you can get approved for?  You can do that yourself.  You can get a pretty good estimate by following the "Rule of 18" based on what you feel is a comfortable monthly payment.  Let me explain.

You decide you can comfortably afford a payment of $450/month.

Take your $450 and divide by 18.  That gives you 25.  Multiply that 25 * 1000  = 25000, or in other words, $25,000

So, in order to get to a payment of $450, you can't finance an amount greater than $25,000.  Now, keep in mind this total includes sales tax, title and dealer fees.  So you would be safe to back $2500 out of that total.  Meaning, the car you are negotiating would cost you $23,500 plus tax/title/fees.

What's the maximum amount of monthly payment you can afford based on your income?  Banks like to see 15% or less of your gross monthly pay as a car payment.  So if you gross $4,000/mo. pay,  a comfortable payment should be under $600 per month.

Another thing will be the car you are considering.  Cars with good, high rebates are more easily bought by banks than cars offering no factory incentives. 

Do your homework before going car shopping.

Avoid these mistakes:

Reply by

1 Contribution
3 People Helped
Helpful to 3 out of 3 people

Thank you!!! 

really helpful info.

Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.


Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.