Being a student means that you don’t have enough money to do anything except eat ramen and drive your hand-me-down jalopy around town, right? Not necessarily. As a student, a new car can seem out of the question. Fortunately, there’s a solution to your problem. You can apply for a Student Car Loan. In fact, you can apply right now.
Anatomy of a Student Car Loan
Student Car Loans are a great product. They work pretty much like any other car loan, except they have some unique benefits. Like other car loans, you will have to make monthly payments and will have a choice of what life length (amortization) you want your loan to have. It is always a good idea to put down as much of a down payment as you can reasonably afford.
To qualify for a Student Car Loan, you must be a full time student. You can be enrolled in a 2 year school, a 4 year school, a technical program, a graduate program, or a doctorate program; it doesn’t matter which. The greatest benefit you will enjoy from a Student Car Loan is the interest rate. Most lenders cut the interest rate in half for Student Car Loans. So if the current market interest rate is 8.5%, you will only have to pay 4.25%.
Build Credit with a Student Auto Loan
A Student Car Loan is a great way to establish credit. Once you graduate from college you will find that you need to have credit to complete any kind of major financial transaction, from leasing an apartment to buying a cell phone to applying for a credit card.
* Auto Loan Center is not an auto loan lender or broker, but provides information about auto loan products and lenders. Not all products and services are available in all states.