| Graduating from college is an exciting time. It | | | | load of credit card debt that they have trouble |
| means you are facing the prospect of new | | | | repaying. And yet, the need for a car remains. So, |
| career opportunities, new relationships, and maybe | | | | what to do? |
| even a new place to live. | | | | Auto Financing For College Graduates With Bad |
| While in college, many students do not have the | | | | Credit: 5 Tips |
| need to own their own car. That is because they | | | | If you are a recent graduate with bad credit who |
| live, work and play near campus. Many of them | | | | needs to buy a car, here are 5 tips that can help: |
| find plenty of ways to get around that don't | | | | 1. Understand that your credit score is just one |
| require the use of a car, such as on foot, by bus, | | | | factor banks look at: Before getting too worried |
| and by bike. | | | | about how your credit score could hurt you, |
| Other college students do own cars while in | | | | understand that it is just one factor that banks |
| school, but when they graduate they are ready | | | | consider when you apply for a loan. Employment |
| to move up and into something a little bit fancier. | | | | history, your college degree, and other factors |
| (Or maybe just something that is highway-legal). | | | | that show you are a credit-worthy person can |
| College Graduates And Auto Financing | | | | help. |
| Most college grads have a lot of new demands on | | | | 2. Find a reasonably-priced car: For your first car |
| their income and savings, including the need to | | | | out of school, get something that is |
| secure and set up an apartment, buy new clothes | | | | reasonably-priced. Sure, you'd love your dream |
| for work, and spend money on dating or to | | | | car right now, but it will still be there in 10 years. |
| support a new marriage. So, how do they afford | | | | For now, choose something you like that also has |
| a new or used car? Easy: financing. | | | | a reasonable price tag. This will translate into a |
| In fact, grads are not alone in their need for | | | | lower loan amount, which means better chances |
| financing: most people even into their 30s, 40s | | | | of getting approved. |
| and beyond have to resort to auto financing | | | | 3. Save up for your down payment: Anything you |
| rather than paying for a new car in full. | | | | can do to increase the amount of your down |
| The challenge that many college grads face in | | | | payment will likewise reduce the amount |
| getting auto financing is that they do not have a | | | | borrowed - and make the banker want to say |
| very well-established personal credit history. This | | | | yes to your application. |
| means that lenders just do not feel they have | | | | 4. Put together a list of bad credit lenders: Some |
| enough information about most grads to make a | | | | lenders specialize in bad credit individuals. They |
| determination about whether they are | | | | have sophisticated risk models that take into |
| credit-worthy. | | | | account more than just your credit score. Be sure |
| And, the problem is even worse if you are a | | | | to put together a list of at least 5-10 bad credit |
| graduate with bad credit. | | | | lenders (more choices = better chance of getting |
| How Bad Credit Hurts Your Chances Of Getting | | | | a loan with a good interest rate). |
| Auto Financing | | | | 5. Apply to at least 3 lenders: Once you have |
| The only thing worse than having no credit history | | | | your list, do some research on each one and then |
| is having bad credit. However, this is an | | | | apply to at least 3 - 5 of them. You will be |
| increasingly-common problem for grads, since | | | | tempted to take the first offer you get, but hold |
| many of them apply for and use credit cards | | | | out for an offer with the lowest-possible interest |
| throughout college. (After all, who can say no to | | | | rate: it could save you thousands over the life of |
| access to thousands of dollars in credit, especially | | | | the loan. |
| when there is serious partying to be done? Not | | | | Follow these 5 tips to get the best-possible loan |
| most grads, unfortunately). | | | | offer for your new car. |
| You see, many graduates leave college with a | | | | |