Many students often wonder if it is possible to obtain a student auto loan with no job and no credit, and while many universities are charging hefty fees through parking permits, the fact that limited public transports can’t serve everyone will force most students to obtain auto loans to get their first cars. Most students don’t know the procedures for auto-financing, however if you take your time to understand some of the factors that decide whether you qualify for auto loans or not, then you will know that a student auto loan is as easy as ABC.
Factors that determine whether you qualify for a student Auto loan
• The basic criteria- Many student auto loan lenders have different criteria for approving loans, however there are some basic factors that will make an approval as easy as ABC;
-You must have obtained a valid social security number (SSN),
-You must have attained the compulsory age of 18 before applying for a student auto loan,
-You must have a proof of your enrolment into a university or college,
- You must have a proof of a financial backup , either from parents or proof that you are employed .
Meeting all these requirements will make your student loan approval as easy as ABC but does not guarantee that your loan request will be approved.
• Availability of a co-signer- The availability of a co-signer who possess high credit rating could be a determining factor in getting a student auto loan approved. Anyone can be your co-signer as long as he or she has a good credit rating as well as a low debt-to-income rate. Most students often request their parents to become their co-sponsors, but for some who do not want their parents to know their intentions to get cars , may find it difficult finding co-signer. Most lenders wouldn’t turn your loan request down if your parents are out of state.
• Availability of a down-payment- One of the best possible ways of getting your student auto loan approved is to show proof that you can make an initial down payment. While many lenders may not make down-payments compulsory for student auto loans, students who can provide such payments will have higher chances of getting their auto loans approved within a very short possible time. Making down-payment will also increase your chances of getting low interest-rate auto loans
• Other debts – Many students may not be aware of the fact that other debts incurred before or during their schooling may affect their chances of getting a secured auto loan. If you are struggling meeting up with other student loans, your lenders may not offer you an auto loan, therefore defaulting in the payment of other loans may be a big factor in getting your auto loans approved. As a student it is better not to have a credit rating than having a bad debt hanging on you , lenders will always remain skeptical about taking another risk of putting an auto loan on your neck.
