4 THINGS YOU NEED WHEN GETTING A STUDENT CAR LOAN

Getting a student car loan is simple. All you have to do is submit an application form and wait for the lenderís response. But you should not take it for granted. We want to you to go through the process prepared and informed. Here are 4 important things you need to look at before actually applying for a student car loan.

Credit History
If this is your first time to have your own vehicle, you probably donít have any established credit yet. In that case, you need to build one first before applying for a car loan. How? You can start with secured credit cards and paying on time. You can also ride on someone elseís credit by getting a cosigner. This is explained below.

Keep this in mind: Your credit history mainly defines your creditworthiness. Without a credit history, lenders will find it hard to assess your capability to pay and your likeliness to default on the loan. Unfortunately, they consider you more likely to default when you have no proven track record to show them. You are a high-risk borrower. This is why it is important to build some credit first so you can get a good interest rate as well.

Money, Money, Money
Do you have a job? You will need one if you take out a student car loan. Although your parents or relatives can financially support you, car payments are never easy expenses. Donít take them for granted. To give you an idea, car loans accrue interest over time. That means the amount you borrowed will eventually become bigger because of the interest rate. Aside from loan payments, you also have to allot money for gas, parking, repairs, maintenance, insurance and the like.

Before getting a student car loan, itís best to secure a job first. You can try applying as a barista in a cozy coffee shop, a library assistant in your university, a baby sitter or be your own entrepreneur.

The Right Lender
Not all lender offer auto loans for students. But there are a lot of small lenders who are very much willing to finance your vehicle. However, be wary of fake lenders that are just after your money. Donít allow yourself to be ripped off.

You can also check out the financing programs offered by automakers. Several automakers have special offers for students.

Cosigner
A cosigner is someone with whom you share the responsibility of being the primary borrower with. That means your cosigner should take on the debt when you can no longer make payments. Having one when you apply for a student car loan will boost your chances of getting approved. You can have your mom, dad, sister, brother, best friend, or a relative to be your cosigner. But make sure that he or she has good credit and someone who you can really trust.

As a final note, remember that a student car loan is also an opportunity for you to build good credit. Just always make payments on time. Make sure you have steady income and be able to set a viable budget. Timely payments also prevent damage to your cosignerís credit.
 
     

 

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2019-11-13
 

 
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Auto Approval Center is a lead provider to lenders around the US. Average APR rates range from 3.2% to 24% depending on credit. Some dealers/lenders may have implications for non-payment or late payments, please see your specific terms for more information. By applying with Auto Approval Center, you agree to have your credit pulled for lending purposes and this could have an impact to your credit score. Thank You for your business!
 

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