Friday, November 30, 2012

Car Loans for College Students

Almost every college student needs wheels. Unfortunately, getting a car loan isn't always easy. Traditional banks and credit unions are usually not very eager to give car loans to college students, who may not have a great deal of income or credit. 

Car Loans Online 

Online lenders are one of the good things that have come with modern times. The competition between online lenders is fierce. Interest rates are lower than ever and even if your credit score isn't perfect, you can still get a car loan that has reasonable loan terms. 

If you are a college student who is looking for a car loan online, remember to use primarily vehicle loan companies that will help you compare quotes and offers from more than one lender. This will help you get the lowest interest rate and best loan terms possible. 

When applying for a car loan online, it is also important to make sure that you answer all of the questions on your loan application honestly and accurately. This will help the lender give you quote that you can rely on. 

Applying for a Car Loan 

Before applying for a car loan, you should determine how much you can afford to spend. College is stressful enough; you don’t want to have to waste time worrying about how you are going to make you car payment. Consider the following expenses to come up with a payment amount that you can afford:
  • Car Loan Payment
  • Car Insurance
  • Fuel
  • Car Maintenance (oil changes, tune-ups, etc.)
Look over your loan quote and work it into your budget. Remember that you're also going to have to pay for insurance, gas and your other monthly obligations.

Repay your student car loan on time every month. This loan is probably going to be one of the first things that can impact your credit history.

Making your payments on time establishes good credit and allows for the possibility of better rates on future car loans.