How to Find a Student Auto Loan

Student auto loans often require a co-signer with a good credit rating.

Students without a credit history may have a difficult time qualifying for a car loan. A credit history provides the financial institution a way to verify the applicant is capable of paying back the borrowed money, since many students do not have a credit history. However, there are financial institutions that will work with students to secure a car loan without the traditional requirements. To qualify for the auto loan, the student may need a co-signer with a good credit history. Sometimes a down payment may allow the student to obtain the loan without a co-signer.

Things You'll Need

• Co-signer
• Down payment
• Proof of employment
• Proof of student enrollment
• Social Security number

Instructions

1. Check with your school's financial aid office and its student services center. Businesses and banks offering discounts, loans and special pricing for students will relay this information to appropriate departments within a school's administrative system.

2. Contact your bank and inquire about student car loans. Having a checking or savings account with a bank may help you obtain a car loan. If the bank initially refuses to lend you money, find out what you need to do to qualify. Qualifying may be as simple as keeping a minimum balance in an already established savings or checking account, making a down payment or providing proof of school enrollment.

3. Contact area banks and credit unions and inquire about student auto loans. To qualify, the student may be required to open an account with the bank or have a co-signer open an account. Opening bank accounts and applying for loans always requires a Social Security number.

4. Check the local newspapers. Car loans are advertised in the auto section of local newspapers. Check with your local paper to verify what day of the week its auto section is released. Most auto information is usually run on Sunday's, although classifieds are released daily.

Tips & Warnings

• If you discover you must have a co-signer, contact the co-signer's bank to inquire about a student auto loan. Their established relationship with the bank may make the process easier to complete.

• Stick with established banks and lenders for the best interest rates.

• Proof of employment may help the student obtain the car loan. The lender may require pay stubs or a letter from the employer.

References

• "Get a Financial Life: Personal Finance in Your Twenties and Thirties"; Beth Kobliner; 2009

Resources

• 6 Tips on Paying Back Student Car Loans