How can a college student get a car loan?

I need a car, but I’m not sure how to get a loan as a college student. What can a college student do to get a car loan?

Answer
You might face a few challenges as a college student applying for a car loan, as you probably have limited credit and limited income. However, you can do a few things to get better rates:
  • Find a cosigner with good credit.
  • Build your credit as much as possible before taking out a loan. You can do this by getting a credit card or a credit-building loan and making consistent payments on time.
  • Find a steady income source, as most lenders will require you to have an income source of some kind before considering you for a loan.
  • Save for a down payment. If you make a large down payment on your car, your lender is likely to give you a better rate.
  • Keep your grades up. Some lenders offer discounts for students with a high GPA.
  • Use a credit union for your loan. Credit unions tend to offer better terms to lenders with little credit because they’re nonprofit organizations.
Remember that if you get approved for a car loan, you need to budget for full coverage car insurance. That’s when the Jerry app can help you find the best rates available. Just download the app and Jerry will show you a comprehensive list of quotes for policies that match your requirements. Once you choose one, Jerry can help you sign up!
Liz Jenson
Answered on Nov 29, 2021
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