Students face many challenges trying to secure car finance. However, now more than ever, there are alternatives for students who need to prove their creditworthiness without a large income or credit history. By researching your options before applying, it is possible to get approved for a car loan as a student.
How to get car finance as a student
You can do a few things to improve your chance of qualifying for a car loan as a student:
- Start building your credit
- Get a cosigner with good credit
- Avoid multiple applications
- Get pre-approved for a car loan
Start building your credit
According to the Consumer Financial Protection Bureau (CFPB), there are no miracles when it comes to building a strong credit score. If you’re looking to get a head start on your credit history, taking out a secured credit card, cosigning with a family member on a card, or becoming an authorized user on their credit card account are all good choices recommended by the CFPB.
Get a cosigner with good credit
A cosigner is obliged to pay back the loan if you fail to, and a lender will consider the credit history of the cosigner as well as the main applicant when making a decision on the application. When credit history is limited ir you’re applying for a car loan for the first time, getting a cosigner such as a parent, sibling, relative, or friend with good credit, may improve your chances of securing financing, according to the CFPB.
Avoid multiple applications
Consider companies such as Birchwood Credit Solutions which specializes in student car loans and helping people with less than perfect credit get on the road. For example, with our in-house financing, there’s no bank approval needed because we’re lending our own money (we are the bank!). In fact, we offer guaranteed credit approval on your student car loan and accept applications from students with all types of credit.
Get pre-approved for a car loan
Qualified applicants can get pre-approved for a car loan and shop for a vehicle already knowing the loan amount and terms for which they are approved. This means they can concentrate on negotiating a good price for their car when it’s time to buy. Learn more about how to get a car loan with bad credit.
Still have questions about getting car finance as a student?
If you have any questions or just need a little more information, contact us through our live chat function, give us a call or get in touch through our contact page. Our team members are waiting to help make this the easiest car buying experience you’ve ever had.