Tips on Getting a Student Car Loan

October 23, 2011 – 4:34 am

If you’re a college student, you know that getting a car loan isn’t the easiest thing to do. Since having a car in college is very useful, and also allows students to build their credit gradually, it’s the perfect time to think about getting a car loan in college. This isn’t an easy feat though, as traditional banks and credit unions are usually not so convinced that college students, who don’t already have a great amount of income or a history of credit, but are even in more debt due to expensive college tuition, will be able to pay back the car loans.

Online lenders have become more and more readily available, and the competition between lenders is especially high strung. Interest rates are offered at lower rates than ever, even if your credit score is less than average. Expect getting a student car loan to not be so easy, but so difficult either. A responsible student can get a car loan that has reasonable terms.

How exactly do you go about getting a student loan for your car online? Here are some useful tips. If you are a college student, keep in mind that primary vehicle loan companies make the process easier by researching quotes online from more than one lender, allowing you to compare rates. Getting the lowest interest rate and best loan terms is the primary goal.

Oftentimes students try to get discounted rates using the wrong ways and methods. For example, not answering all of the questions on a loan application honestly and accurately like credit information, income, etc. Consider your expenses and set a budget. This will help the lender give you a quote that suits your needs and one that you can rely on.

When applying for a car loan, make sure it covers everything that is associated with owning a car. Car insurance, monthly payments, gas expenses, and the maintenance of your vehicle. Some lenders will give you an additional rate reduction if you have certain criteria in your application like having your parents cosign the loan or if you repay your student car loan on time every month. Another useful tip is to use your loan to buy a used or inexpensive car, in order to keep your loan costs down while you focus on your education and earning money to repay your loan. Avoid using a credit card to pay off your loan because it’s very easy to fall deep in debt with interest rates associated with credit cards.

Free-lance writer with a passion for Writing and Research.
Amanda Rodriguez
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