If you need a quality used car to get to your college or university classes and to your part-time job, your limited credit history may result in a low credit score. However, there are several alternative to traditional loans, such as bad credit car loans and in-house financing. In fact, as a student, in-house vehicle financing may benefit you, and we’re here to show you how.
More Loan Options
Used car dealerships that offer in-house financing often have a variety of loan options available that you may not be able to get from a lender that is more demanding. While you may not get the best interest rates, many dealerships are willing to work with students that have a limited credit history. It’s a good idea to learn about more than one type of loan from your dealership before you settle on one that meets your budget.
A full load of classes, work and family obligations probably keep you busy all day, every day, so paying for your car in a way that is convenient is probably going to be important to you. In-house financing means you pay the dealership directly, so you can drop payments off on the way to or from school or even after your evening class, since some dealerships are open in the evening. Making your payments on time and in a way that is simple can help boost your credit score and enable you to keep your daily schedule flowing.
A Chance to Build Credit
As a young person with limited credit options, using bad credit car loans and in-house financing can actually improve your credit history. As you make payments and work toward meeting your loan’s requirements, you might see your credit score climb. Using in-house financing can start you down the path to building an excellent credit score for the future.
Owning a quality used car can make life as a student much more convenient. If you have a limited credit history, then using in-house financing might help this goal within reach.