If you’re a college student with bad credit, you’re not alone. Sallie Mae, whom you probably know as the leading provider of paying-for-college programs, released a study in April 2009 called “How Undergraduate Students Use Credit Cards.” There’s no need to rehash an essay of the findings here, but generally, the study showed that many of your classmates are suffering from poor credit as well.
Summary of Sallie Mae Study Findings
- Undergraduate students have, on average, 4.6 credit cards, and 50% have four or more.
- The average balance across these cards was nearly $3200.
- Alarmingly, not but 17% of students stated that they regularly paid off all of their cards each month.
- Overall, 84% of students felt that they would have like to receive more extensive education in the realm of financial management either in high school or as a college freshman.
These findings are alarming, no doubt. At Student-Auto-Loans.com, we hope we can substitute for the lack of education students are receiving when it comes to financial matters. Even with a credit score of 619 or below, there is a good chance we can get you pre-approved for the car loan you need. However, there are some key tips to remember before you ever autograph that dotted line on your loan.
Tips: Auto Loans for Students with Bad Credit
- Buy a reliable, used car that is priced well within your means. After you submit your application, your lender will be able to discuss various monthly payment amounts based on different term lengths, etc.
- Get a cosigner if you can. If you have a parent or relative with solid credit, try to get them to cosign the loan. This will increase your approval chances and decrease your interest rates.
- If you’re not making your current credit card payments, and/or you’re already in substantial debt, reevaluate how necessary your new vehicle is. Paying off a student car loan in a diligent, timely manner CAN repair your credit and improve your credit mix, BUT failure to make your monthly payments will only make your bad credit worse.