Many teenagers cannot wait to get behind the wheels of a vehicle, so they can become more independent. They might even think about getting car loans to finance their rides.
However, the reality is that a teen can buy and even own a vehicle, but for getting credit to purchase transportation, they must be 18 years old in the U.S.
Suggestions for Getting Car Loans
Minors who have turned 18 and want to finance a vehicle will discover they need to make sure they have a good basic plan in place to increase their chances of getting approved.
A few recommendations include —
- Individuals need to have the proper documentation to present to the loan officer. This includes items such as proof of their ages, social security cards, valid passports and national identification cards.
- Since adolescents do not usually have a credit history, some lenders understand this and will probably try to work with the individuals. They might even have a low rate/first-time buyers program in place.
- Having an income of at least $1,300 to $2,000 a month is a basic requirement of most lenders. They will not take a chance on lending to people that will have a tough time making payments.
The ideal amount to make is at the minimum $20,000 annually. Also, having a stable history of working is beneficial in helping to obtain a loan.
- Young folks should try to make the biggest down payment that they can. This will show the lender that they are serious and encourage them to assist them.
They need to remember to continue to be responsible with their payments, this will help them lay the foundation for building up their credit scores.
Do Not Give Up
Even though it might seem as though it is a hassle for young people to find a lender for car loans, there is no reason to despair. There are financial institutions who realize when you are just starting out in life, you need assistance, so they have special plans available.
