Buying a car is a journey, not a destination. Sure, the destination is satisfying, but the right journey can make the end goal that much sweeter. For most car buyers, having good credit and steady income are the keys to getting approved for a loan — though they are both things college students may naturally struggle with. Poor credit, no credit and low incomes are often part of the college experience. Fortunately, there are steps you can take — such as adding a co-signer and saving for a down payment — that can help improve your chances of qualifying and getting a great minot auto loans.
Before you decide whether a car loan is right for you, let’s explore how they work:
- A car loan is a kind of secured loan, which means the car is used as collateral. So, if you don’t make your monthly loan payments, your car could be repossessed to the lender as payment.
- Taking out a loan might be a new step for some students, so being familiar with common terms can help as you start your search.
Down payment: the money you pay upfront that goes toward a purchase (it’s possible to get a car with no down payment)
Monthly payments: the amount of money you pay each month to pay off your loan
Loan term: the length of a loan or how much time you have to pay it off (commonly 24-72 months)
Principal: the amount of a loan without interest or other fees
Interest: the amount a lender charges for borrowing money, which is expressed as a percentage of the principal
Credit unions: As a not-for-profit organization, a credit union will likely offer lower auto loan rates and fewer fees than most banks. Credit unions are also generally more willing to work with individuals who have lower credit scores or no credit score. Aspire offers competitive auto loan rates to members who are aged 15 -25. The individuals who are 15-18 will need a qualified parent/guardian co-signer on the loan. The loan is designed to assist you in the milestone of purchasing your first car with a reduced interest rate up to 60 months. Terms and conditions apply.
Shopping around for a loan before you start looking for a car can help you get a clear idea of how much money you can borrow, what current interest rates are, and how long you may need to pay back the loan.
Shift into your new car with your very own minot auto loans lenders. Our team of lending experts are ready to help you every step of the way.
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