Is is Possible to Get a Loan Before Having a Credit Check?
Now young students can enjoy many benefits when they avail their credit facilities. And college student auto loans are specialized credit facilities which make it possible for students to satisfy their commutation needs by availing an affordable car loan having reduced interest rates, and lowered down payment.
Students generally do not have credit ratings since majority of the students are young and starting out in life. They have not done much shopping, and so their credit history does not indicate years of purchase and loan redemption. Lenders know about this, and so they are more lenient while providing the credit facilities. Even if the applicant might seem "doubtful" as far as repayment of credit is concerned, the lending institutes often give a benefit of doubt. That is why the student auto loan with no credit history is possible, and gets easy approval.
Lower Interest Rates
Another distinct advantage that students enjoy while availing their auto loans online is that the rate of interest charged for their credit is low and easily afforded. The net payable interest amount is minimal. Also the monthly loan repayment amount is less, so it becomes easy for the student to redeem. In some cases, the lenders also provide further leeway in the car loan redemption, thus providing flexibility and making things easier and "custom made" for the applicant.
Lowered Down Payments
It is a known fact that majority of the students go in for study loans to finance their education. So they have a certain liability to begin with. In most cases, it would be very difficult for the students to go in for a substantial down payment as applicant for standard auto loans do. Another factor affecting the down payment is the credit ratings. Better the credit rating, lower is the down payment. However, students usually have no credit history. So lenders offer no credit auto loans which provide a facility of reduced down payment, thus making it easier for the students to afford their car. Depending upon the case, some lenders might even forgo the down payment entirely.
Co-signer Not Mandatory
Generally; when the credit ratings are low, bad, or non-existent the lenders often request a co-signer to guarantee the loan redemption. In case of college students, majority of the lenders overlook this guarantee, and still provide the loan facility.
Easy Online Availability
Many of the moneylenders and almost all credit institutions have an online presence, and their websites exhibit the features offered in their auto loans that are specially meant for students. Since the competition is more online for the moneylenders, they offer highly competitive interest rates to students. This can work in the student's favor. It is possible to negotiate with the creditor and further reduce the interest rate charged for college student auto loans. In most of the cases, the lenders agree to further lower down the interest rates, and pass on the benefit to the applicant.
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Having no credit does not mean that you can not get auto loans online. Even without a cosigner, you may still be able to secure no credit auto loans for college student for your education, but without a cosigner and no credit or zero credit history the chances for the loans you may qualify for are very limited.