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How can a student get a car loan?

Is it possible for a student to get a car loan? I want to get a car for next year since I’ll be living off campus but I’m not sure if I’ll qualify for a loan because I’m a student and I’m not working consistently.

avatar
Liz Jenson · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Getting a car loan as a student is difficult because you either have no income or limited income and a thin credit history. However, you can do a few things you can do to improve your chances of getting approved, including **building credit, getting a job, and finding a cosigner.
More in-depth, these methods can help you gain strong consideration for a car loan.
  • Find a cosigner
    with good credit to boost your chances of approval.
  • Build your credit as much as possible before taking out a loan. Get credit card or a credit-building loan and make consistent on-time payments.
  • Find a steady income source. Unfortunately, most lenders will require you to have some kind of income source in order to qualify for a car loan. Even a part-time job can help your chances of getting approved for a loan.
  • Save for a down payment. If you make a large down payment on your car, your lender is more likely to approve your car loan and give you a better interest rate.
  • Get good grades. Some lenders will offer discounts to students with a high GPA.
  • Use a credit union for your loan, as credit unions tend to offer better terms to lenders with low credit because they’re a nonprofit, community-based organization.
Keep in mind that you also need to budget for full coverage car insurance per the stipulations of your loan. To make the process easier, check out Jerry.
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