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How to Avail Car Loan with Zero Credit Rating Being a Student?
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Posted On :
Nov-27-2010
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Article Word Count :
488
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Student car loan is advantageous for the two major reasons. Firstly, it eliminates the transportation problem and secondly, bad credit history. Bad credit rating can be altered into a good one with the use of a car loan. The monthly payment made for car loan is being reported to every major credit reporting agency. Consequently, car loan if paid consistently and within the stipulated time period can perk up your credit rating.
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Students will have the necessity to commute to different places while they are studying. Especially, college goers will have lots of friends and weekend parties. It is not possible to ride the bicycle and reach the destination on all occasions. A car would certainly save the time and of course it gives immense pride and pleasure in driving it. There are several financial institutions offering student auto loans at lower interest rates with flexible terms. Affordable luxury is now available to all sorts of student and there are several advantages in getting these kinds of loan amounts.
Instant approval: It is a known fact that students do not have good credit history in fact they have no credit built up. They cannot afford extravagant amount as upfront payment and they have to buy their car with a limited amount in hand. Lenders are aware of this fact and are lenient while offering these loans. Student car loans with zero credit history are absolutely possible in today's scenario. Thanks to the recession and lenders are aggressively looking out to improve their business sales. Lenders offer instant approval on all student auto loans provided if they meet the minimum eligibility criteria defined by the lenders.
Low interest rates: There is yet another advantage in getting student auto loans with no credit history. The rate of interest is relatively kept low and is affordable to most of the students. This reduces the monthly payments for the college students. Lenders might give additional benefits and flexibility to the student loans. Giving more flexibility helps them to gain more business.
Lower Down Payments: Sizeable down payment becomes a huge burden for the students. Lenders will be happy to see the parents supporting the loan process as it will give better credibility on students. If the loan is obtained with collateral security, there are more numbers of chances to reduce the down payment to a greater extent. However, it is highly recommended for the students to arrange for the initial funds which will differ from 15% to 20% of the total vehicle cost. If not, this amount will be added in the loan amount and the student might end up paying a huge amount as interest and will complicate the process.
Co-signer is not obligatory: A lender will usually demand a co-signer if the down payment is very less. However, the lenders are lenient for students and try to avoid this circumstance. This rule depends on the lenders and not all might compromise with this factor.
Online auto loans: Online auto loans are a better option for students. This will help them to obtain quotes from different vendors and compare their features. As the competition is very high in the online market, they offer loans at reduced interest prices.
The above said factors will help the students to obtain no money down auto loans and fulfill their dream.
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Article Source :
http://www.articleseen.com/Article_How to Avail Car Loan with Zero Credit Rating Being a Student?_43252.aspx
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Author Resource :
Student car loans program is ideal for college students who needs car but does not have the sufficient funds to buy. Online student auto loans are among the easiest to apply for and getting instant approval on used car auto loans.
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Keywords :
student car loan, auto financing, college, no co-signer, no credit check, low interest rate, online, automobile, vehicle, No ,
Category :
Finance
:
Loans
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