Students these days, both high school and college students, almost always need their own cars to get around these days. While a car won't appreciate in value, it is an important investment of your money and likely one that will require getting a student car loan in order to purchase. Here are five tips to help you get a student car loan.
1. Buy A Cheap, Reliable Car: Since young people statistically have more accidents than more experienced drives and your cash reserves are limited, then make sure that you shop around to find a good reliable car that is cheap.
2. Shop Around for Your Loan: Simply type in your zip code and you'll find student car loan providers in your area. Give them additional information about the terms of the loan that you'd like and you'll be able to compare the interest rates that they offer you.
3. Find A Co-signer With Good Credit: Students usually have no credit score and loan providers will ask you to have a co-signer on your student car loan. You should aim to find someone with a high credit score, 750 or above, as that will influence the rate that you get on your car loan. The higher your credit score is, the more likely you'll repay the loan and the better conditions you'll get.
4. Take Proof of Income: When meeting with a loan provider, make sure you take documents showing that you have a part-time or seasonal job that earns you money. If the lender sees proof that you have been consistently earning $500 a month for the last year, they'll be more likely to give you a low interest rate since you'll be able to make payments on time.
5. Pay On Time: For most students, a student car loan will be the start of your credit history and making mistakes early on will affect your credit for years to come and will hinder your ability to get student loans for college and a mortgage. Make sure to make your monthly payment early each month to build up a good credit score.
Now that you know the basics of getting good terms on your student car loan, take this information and get started today.