Is it possible for students to get auto loans with no credit history?

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » Research » Guides » Building Credit History » Is it possible for students to get auto loans with no credit history?

Is it possible for students to get auto loans with no credit history?

By
Add to Favorites:
Getting a car as a student can never be an easy thing to do. You need to take into consideration the fact that you will have to finance yourself for it and make the monthly payments on time. If your dad is helping, it is always a great thing but if not you need to put some thought into investing in it. Firstly, you need to figure out if you need it. If you live far away from college or school, it makes sense to invest in a car. It is also better to do it in a group. This way you can car pool to school and share the costs associated with maintaining it. It is really not possible to bicycle if you live far away from school. And it can get tough during the winter months. A car can save a lot of time, which you can use for your course work or for part time jobs. The main obstacle to owning a car is that you cannot easily get a loan approved as a student. You will either need someone to co-sign on the loan or you will need to settle for exceptionally high interest rates as you have no credit history. Now more often than not, a student will not have a credit history given the fact that he or she would have just opened a bank account after getting out of high school. There are a lot of banks that offer instant approval loans. Lenders are aware that students do not have loads of cash lying around to be able to afford down payments on the car. Now an auto loan is usually easy to get since it is automatically secured. It`s all about reaching the minimum eligibility criteria that the lender sets for the borrower. There are also several low interest rate schemes. For students, they might also look into college records like grades to make an appraisal about the credit worthiness of the individual. There will also be flexible repayment schemes based on the type of lender that you decide to go with. Now down payments are something that would be a huge burden if you do not have anybody to help you out with it. The best way to get a very low interest rate loan would be to put in a substantial down payment. But if you cannot do this, most lenders will accept even ten percent of the cars value as down payment. The co-signer is not compulsory. It all boils down to which lender you decide to go with. Choosing the right lender will go a long way in reducing your burden. Go online and look for quotes. You can fill in your details and get instant quotes and get a feel of the sort of investment you are going to have to make before meeting the agents in person. Remember, buying a car is mostly the first big financial step that you are taking. Use it as a means to gain experience with the least possible financial impact.

Add to Favorites:
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.

Related Research:

5 Reasons to Get the Capital One Venture Miles Rewards Card

5 Reasons to Get the Capital One Venture Miles Rewards Card

By Herbert Moore, Posted: January 18, 2017

If you’re looking for a great travel rewards credit card—one that offers unlimited earning opportunities, flexible redemption, and lots of perks—look no further. This card from Capital One has you covered. Continue reading
Credit Card Tips For Holiday Shopping 2016

Credit Card Tips For Holiday Shopping 2016

By Herbert Moore, Posted: November 23, 2016

November and December are the busiest months as gift shopping reaches its peak. People rush around looking for the best gifts and the best deals leaving a lot of money in the shops. Holiday season may force you to go over the household ... Continue reading
Credit Cards to Save More on Holiday Shopping

Credit Cards to Save More on Holiday Shopping

By Herbert Moore, Posted: November 22, 2016

Discounts and special offers are available all year round. Werther you are a bargain hunter or an impulse buyer, make sure you check online discounts and special offers. Also, if you are a cardholder, see if your credit card opens the door ... Continue reading