Congratulations on getting into your master’s program! I’m sorry to hear about your dad’s truck, but I’m sure it was nice while it lasted.
The good news is you should qualify for a car loan—and you have some options:
Trading in your truck: Letting go of a beloved car full of memories can be difficult. But the car dealership is likely to give you something for the vehicle, and this will knock down the sticker price of the new car. If you have some savings you can use for a down payment
on top of your trade in, this will up your odds of qualifying for a loan as you’ll need to borrow less. Shopping around: You should shop around for both the car you want and lenders to find the best deals.
Figure out the car that you want, down to the VIN number if possible. That way, you can subtract your trade in and down payment from the sticker price to determine the loan amount you’ll require—and whether or not you’ll be able to afford the monthly payments.
Some lenders specialize in students like yourself and people with thin credit reports. Check with your local credit unions, banks, online lenders, and dealerships.
Getting a cosigner: If you can’t qualify for a loan on your own, consider enlisting the help of a cosigner. Anyone with a good credit score of 660 or more who’s willing to cosign can help you get approved and earn a better interest rate. This will create more breathing room on those monthly payments.
If you are unhappy with your initial loan, don’t worry. You can still purchase a vehicle now, then refinance into a lower-interest loan after making several on-time payments and improving your credit score.
Refinance quickly and easily through the Jerry
app. On average, those who refinance pay $85 less every month.