So you’ve graduated from college and want to get a used car, right? Well, how does a college student get a used car loan when there’s not a lot of credit out there? There’s a way. It’s called a non-standard or alternative financing arrangement, and it may be the way to go if you have bad credit or no credit at all. Let’s take a look at some of the options and see if you qualify.
Student Loan Consolidation
The best option is to take out a private student loan consolidation loan. These types of loans are available if you have more than one federal student loan. This allows you to use your other loans to used cars in sacramento pay off the one with the highest interest rate and save money in interest payments. After you have paid off the high-interest loan, you can pay off the other loan, too. This is a great option if you can qualify.
However, the downside is that you will be required to pay a higher interest rate on the loan. Many people are willing to pay a higher rate to save money on their loan payments, but this can be tough to do when you are in a tight budget.
Credit Repair
If you have good credit and can establish a solid history of paying bills on time, you may be able to get a good credit repair loan. However, this can be difficult. The bank or loan company is looking for a history of good payment history, and many college students are just starting out.
You may have to wait a while before you can get your credit repaired. Sometimes it can take several months for your credit to get repaired, and it’s not uncommon to have to wait a year or more. This is the time that you are at risk for getting into trouble with your loan, and your credit score could take a hit.
Used Car Financing
If you have a bad credit score, a used car loan will probably be out of the question. You may be able to get a small amount of financing on your used car, but not much. Many people get used car financing after they have a few years of credit history under their belt.
Sometimes, people who have bad credit will be able to take out a second mortgage on their home to help used cars in sacramento cover the cost of a used car. This is a good option if you can do it, but it can be a big hit on your credit score.
