If you are a student, there is a good chance that you have not had a lot of time to build credit. You might not own a car, and you certainly don't own a home that you are making mortgage payments on. This can make it hard for you to get an auto loan, which could make your job search more difficult if you have to limit yourself to businesses that are within walking distance of where you currently live. If you absolutely cannot find a job in your area, you are going to need to figure out some way to get a car loan. Here are some tips for getting an auto loan with little to no credit history and a low credit score.
1. Talk to Your Family's Bank
If your family has used the same bank for years, there is a good chance that they have built up a relationship with that bank. You might be able to leverage this relationship with the bank in order to get a car loan that will allow you to purchase the vehicle that you need. This works better if you have little to no credit history and if your parents know people who work at the bank personally, or are able to come to the appointment with you. If your family doesn't have a relationship with a bank, considering shopping around locally. Sometimes, local banks will be more willing to help someone from the area.
2. Consider Getting a Cosigner
If you have a good job lined up, then there is a chance that your parents might be willing to cosign a loan for you. This is incredibly important because it will allow you to get access to a car without worrying your parents about having to pay off the loan for you. Be sure that you stick well within the budget of what you can afford so that you won't fall behind on payments.
3. Check Out Auto Loan Specialists
There are some lenders that specialize in giving out auto loans to people who have low credit scores. They tend to charge more interest because you are a greater risk, since you have no credit score and are an unknown, or you have a poor credit score and therefore have a history of not paying back your loans on time. This is a great option if using a local bank or a cosigner does not work.
For more information, talk to a company that specializes in auto loans for poor credit scores.