How to Get a Student Loan With No Credit History
Wednesday, March 31, 2010
Finding a Low Interest Debt Consolidation Loan
While pursuing studies, students need to commute and need a car to save time. It is important because many students take up part time jobs to sustain themselves, and pay off some portion of their study fees, and time is always a constraint.
Depending upon their specific needs, many moneylenders offer auto loan for college students to make commutation affordable. These types of special loans offer some advantages which are narrated below:
Easy Approval
Students generally do not have credit ratings since majority of the students are young and starting out in life. They have not done much shopping, and so their credit history does not indicate years of purchase and loan redemption. Lenders know about this, and so they are more lenient while providing the credit facilities.
Even if the applicant might seem "doubtful" as far as repayment of credit is concerned, the lending institutes often give a benefit of doubt. That is why the student auto loan with no credit history is possible, and gets easy approval.
How to Decide on the Right Student Loan
Lower Interest Rates
Another distinct advantage that students enjoy while availing their auto loans online is that the rate of interest charged for their credit is low and easily afforded. The net payable interest amount is minimal. Also the monthly loan repayment amount is less, so it becomes easy for the student to redeem.
In some cases, the lenders also provide further leeway in the car loan redemption, thus providing flexibility and making things easier and "custom made" for the applicant.
The Advantages of a Subsidized Student Loan
Lowered Down Payments
It is a known fact that majority of the students go in for study loans to finance their education. So they have a certain liability to begin with. In most cases, it would be very difficult for the students to go in for a substantial down payment as applicant for standard auto loans do. Another factor affecting the down payment is the credit ratings. Better the credit rating, lower is the down payment.
However, students usually have no credit history. So lenders offer no credit auto loans which provide a facility of reduced down payment, thus making it easier for the students to afford their car. Depending upon the case, some lenders might even forgo the down payment entirely.
Co-signer Not Mandatory
Generally; when the credit ratings are low, bad, or non-existent the lenders often request a co-signer to guarantee the loan redemption. In case of college students, majority of the lenders overlook this guarantee, and still provide the loan facility.
How to Find a Personal Unsecured Loan
Easy Online Availability
Many of the moneylenders and almost all credit institutions have an online presence, and their websites exhibit the features offered in their auto loans that are specially meant for students. Since the competition is more online for the moneylenders, they offer highly competitive interest rates to students.
This can work in the student's favor. It is possible to negotiate with the creditor and further reduce the interest rate charged for college student auto loans. In most of the cases, the lenders agree to further lower down the interest rates, and pass on the benefit to the applicant.
Having no credit does not mean that you can not get auto loan online. Even without a cosigner, you may still be able to secure no credit auto loans for college student for your education, but without a cosigner and no credit or zero credit history the chances for the loans you may qualify for are very limited. At Auto loan finance.net you will get latest information you need for your no credit auto loans for student at your fingertips.
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