Obtaining Student Auto Loans and Bad Credit Auto Loans
When it comes to getting a student auto loan things can be tricky. You are young, inexperienced, and more often than not just starting a credit history. Unfortunately, just beginning your credit journey can often be the same as bad credit in the eyes of certain lenders. There’s a reason why the phrases “no credit” and “bad credit” tend to be synonymous. However, there are ways to get Bad Credit Auto Loans. In other words, trying to get a student auto loan doesn’t have to be a nightmare or traumatizing. There are a few tips to help you get ahead of the game and into a new car.
Look Stable in the Workplace
When banks and creditors look at your work history, the first thing they seek out is consistency. How consistent are you as a person? If you get a job in one profession and stay there, you look dependable and stable on paper. However, if you start at one job and constantly jump to different professions, i.e. serving to construction to teaching, you portray yourself as unstable and flaky. This makes banks and creditors less likely to loan you money.
Know Your Credit Score
This is when auto loans for no credit or bad credit come into play. It is not uncommon for students to look confused when they are asked what their credit score is. Many do not know what it is or if they even have one. There are some things that can affect your score. Applying for various forms of credit in a short amount of time can hurt your credit score. Every time you have a hard-inquiry to your credit it drops it. On the other hand, if you have one line of credit, i.e. a credit card, and maintain it in positive standing it raises your credit score. It is important to monitor your credit so you know if there is any fraudulent activity and report it.
Understand Your Options
Not everyone can obtain a straight student car loan. There are Bad Credit Auto Loans and programs to assist students and those with bad credit to be able to get an auto loan. In some cases, a co-signer may be needed to obtain a student auto loan. It is important to ask questions and research what you do not know about the student auto loans and credit inquiries.