Students are generally keen to have a car of their own but find it difficult to locate a financier for the purpose. How to get a student car loan isn’t all that difficult to understand provided the student can devise a financial plan for paying back that loan in time. Here is how they may proceed:
1. At the outset they need to open a savings account with a bank if they don’t have one already. This helps building their banking history. Any financier would like to ensure that the borrower knows to handle funds before offering any loan.
2. You should inquire your credit union or the bank if they provide car loans to students. It is recommended to approach the very lender who is enjoying the patronage of your parents. This is of great help provided your parents have a good credit history.
3. The nest step for how to get a student car loan is to fill up the loan application. Usually, it will require a recommendation from the bank with which you opened a savings account and or a proof from your college certifying that you are enrolled with them. You should surely include in the employment section if you are looking forward to getting apart time job.
4. Do not hesitate to ask for some perks from your lender. The lender may offer you a lower rate of interest or agree to extend the repayment period as you do not have a full time job yet. Usually, lenders would give further reduction in rate of interest if you get the loan cosigned by your parents.
5. Go over the loan offer and check if you can accommodate the additional expense in your budget. Don’t overlook the fact that you’ll need to keep provision for fuel, insurance and other maintenance expenses.
6. Having known how to get a student car loan, you can get one but ensure to pay your loan installments regularly without any delay. In all probability this would be your first loan and failure to pay your loan can severely affect your credit history. On the other hand making timely payments helps establishing good credit store, facilitating getting future loans at better rates of interest.