Getting a Student Auto Loan with a Minimum Wage Job

A Credit Article Contributed by Kris Griebe

Can I Afford an Auto Loan As a Student with a Minimum Wage Job?

Even with a minimum wage job, and being a student, it is still possible to get an auto loan. You may not be able to get a large loan for a brand new car, but it is still possible to get at least a loan for a used vehicle.

Being a student, you probably won't have much of a credit history. Because of this, it will be harder to successfully apply for a loan than it would be for someone with an established credit history. Even those with bad credit often have an easier time than those with little or no credit history. Luckily, there are a few factors working in your favor.

Many banks offer programs geared towards students who need to take out a loan for an auto, or some other expense. Because of this, you will have a base from which you can take advantage, and hopefully come away with the loan you are seeking.

Even with a minimum wage job, it is possible to afford a loan, so long as the sum is not large. It is not impossible to get a loan large enough to purchase a used vehicle for only $100.00 a month, which should be fairly easy to pay off, even being a student.

Besides Getting an Auto Loan from a Bank, is There Any Other Way a Student Can Get a Loan?

You could always apply for a student loan. These are usually used to help pay the cost of tuition, but some loans do not require that the money be spent in that way. Even better, some of these loans do not have to be repaid until you finish school. By going this route, you will open up many doors, giving yourself greater opportunity to secure your loan.

Check with your school's financial aid office to see if there are any loans you qualify for. You can also try searching the internet for student loans. Either resource should yield a number of options for you to explore.

As a Student Seeking an Auto Loan, What Can I Do to Help Myself?

This may be difficult, as you only have a minimum wage job (though if you have a better job, good for you! That will make this step much easier! ). The biggest aid you can create for yourself is a large down payment on your vehicle. By paying more money up front, you reduce the amount you have to borrow, hence making it more likely you will receive your auto loan.

Ideally, it is a good idea to pay for at least one third of the cost of the vehicle up front. If you can do this, you have reduced the amount you need to borrow by one third as well.

It may be difficult, and require a significant amount of time saving up, but it will make it much easier for you to get an auto loan. The more you pay as a down payment, the more likely you will be to get a loan. So, start saving now, and in no time at all, you will have your automobile!