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Can I get a car loan as a 21-year-old?
I'm 21-years-old and I'm looking to get my first car after I graduate college and get my first job. However, I'm pretty sure I won't have enough to pay for the car up front—but I don't know if I'm too young to finance it. Can I get a car loan as a 21-year-old?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Congrats on thinking so far ahead! I’m happy to say that at 21, you legally qualify to get your own
car loan
. The legal age to sign a loan contract is 18-years-old, so you’re definitely eligible!However, age alone won’t guarantee a car loan. You also need to meet other criteria to garner consideration for a car loan:
- Proof of income
- Debt-to-income ratio of 43% or less
- Good credit history
As a 21-year-old, establishing credit is perhaps the most difficult aspect of getting a car loan. However, you can ask a parent to act a cosigner if it’s deemed necessary by the lender. As a young borrower, this is probably the best way to get a car loan.
When you’re shopping for a car, don’t forget to budget for full coverage car insurance, as it’s required for financed vehicles.
One easy way to make sure you get the best deal on full coverage is to use the
Jerry
app. We’ll get you customized quotes from top-of-the-line insurers, so that all you have to do is pick the plan that works best for you!Good luck, and happy shopping!
View full answer
- Gregory R.
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