PNC Auto Loan Review [Year] – Forbes Advisor

PNC looks at factors such as credit score, income and employment as well as the type and age of the vehicle being financed. While it doesn’t provide exact details of its borrower requirements, here are some general guidelines.

Credit Score

Your credit score and history help lenders decide whether to approve you for a loan and under what terms. For example, you could be denied or charged a higher interest rate if you have bad credit or no credit score.

Generally, you’ll need a good to excellent credit score to buy a car—typically 660 or above. If your score is lower than that, you might still qualify but at a higher interest rate. You could always consider getting a co-signer, too, to ensure you qualify or to secure a lower rate.

Debt-to-income Ratio

Lenders will also look at your debt-to-income (DTI) ratio. This measures how much of your monthly income goes toward debt—in other words, if you can handle additional car loan payments.

To calculate your DTI, add up all your monthly debt payments, then divide that by your gross monthly income (what you earn before taxes are taken out). Typically, auto loan lenders look for a DTI ratio of 50% or less.

Employment and Residency

Lenders will also usually consider your employment and length of time at your current residence. They want to be certain that you have stable employment and are settled where you live.

Down Payment

Putting some money down to buy a car shows the dealer how serious you are. Depending on the amount, your down payment could reduce the overall size of the loan, lower your interest rate and even influence the loan term you qualify for.

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