Is it good for credit to have two car loans?

Elin
I have a car loan and want to get another loan. I also want to refinance my house next year, would it be a good thing for my credit to get a second car loan before refinancing?

Grover
If I were you I would wait until you have refinanced you home before going into additional debt for another vehicle.When you refinance you home one of the largest things other then your scores and pay history that the lender is going to look at is your debt to income ratio. If you have another vehicle loan on your credit it will reduce the amount that the lender will be able to loan you on your refinance of your home.

Cecily
Yes and no, it is good to have loans that you pay regularly because that improves your credit rating, but it also means you have less disposable income that can be used to pay for other things. The bank will look at how much spare money you have and make a decision based on that, as well as your previous credit.

Johnathan
Absolutely not.The amount of your debts will directly reduce the amount of mortgage payment the bank will allow you to have.If anything pay off your first car loan (if you've had it for more than 6 months). Paid off loans are best for credit worthiness.I have bought 4 homes. I have always made sure I had no outstanding debt. I have even made my credit card balances 0. I received top score and best rate advertised. The mtg people said they had never seen anything better.You do not need to pay interest to have top credit. All you need is one or 2 credit cards and pay them in full each month. It's 100% myth that you need to make loans to have top notch credit scores./

Dave
Never finance anything that goes down in value.

Luci
NO!!!