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20 Mar 2019   /   0 comments

How Much Money Can I Borrow?

Paul

moneyborrowBefore taking out a loan, borrowers should ask themselves: how much money can I borrow? In reality, a lender will give you how much they think you can afford and give you a loan based on their estimations. They use formulas to estimate how much you can afford. A borrower should evaluate their finances to consider how much they can afford to pay back.

Debt-to-Income Ratios

Lenders tend to use two basic formulas when trying to figure out how much they should lend you based on your income and/or the debt you already are paying:

  • Front-end Ratio: This formula uses the percentage of your yearly gross income to make monthly payments.
  • Back-end Ratio: This is the typical debt-to-income ratio banks and lenders use. They look at the percent of income you already use to cover debts that exist like child support, car payments, other loans, and credit cards.

How much money can I borrow?

Banks base Car loans on your credit and how much of a monthly payment you can make. You can buy a $30,000 car, but think about how much more money adds up due to interest. Then, the monthly payments rise unless you have a heavy down payment. Like a mortgage, the down payment will determine how much of a loan you’ll take out.

Car loans can be a tempting loan since essentially you could buy any car you want in the world. It’ll all be about what you think you can afford after you look at your credit, and the rate you could get.

Car Title Loans with TFC Title Loans

Many of these loans are unsecured loans which use your credit history to determine how much your interest rate will be, or even how much you’ll get. With TFC Title Loans, we can help you get quick cash without having to find a specific loan for what you need.

Even if you just need a couple of grand to get you back on your feet, TFC can help. We offer you between $2,500 to $50,000 based on the equity value of your car. By using your vehicle’s title as collateral, we can get your funds in as little as one business day. Sounds a lot better than waiting months to be approved, right? Contact us today to see if you qualify!

How Much Cash Can i Get?

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