Student Auto Loans – Simple Cure for buying the Car of your Dreams without any Credit Score

By: Williams Orchard

150 years ago, an innovator was born. A visionary engineer, he pioneered the American automobile industry. Henry Ford’s Model T changed the way Americans travel. He made cars affordable for everyone including students.

Today, cars have become expensive. It is impossible to buy a car without auto loans. Most lenders believe students are risky credit borrowers and reject their auto loan application. But, you shouldn’t lose your heart. Remember Ford’s words, “Don’t find a fault, find a remedy”. This easy car financing guide will help you understand your troubles and provide effective solutions. Find the remedy to auto loan rejections and get ready to drive your favorite car.

Reason for Rejection – No Credit Score

Most students do not have a credit score because they haven’t used credit for buying things. Due to this, lenders are unable to judge the credit repayment ability. As lenders are not sure of getting back their money, they avoid financing young buyers.

Remedy for Rejection

Lenders are unsure of your financial capacity. They are unable to judge the risk factor because of unavailability of credit history. But, you can manifest your stable financial situation in following ways:

Regular Income Source

Lenders will ignore your zero credit history if you are earning regular income. Part-time job is not a problem because lenders understand the limited availability of time with students. But, they need you to have a job because it will ensure uninterrupted monthly payments. You can show your recent pay-stubs to the lender.

Lesser DTI

Debt-to-Income ratio shows your monthly debts in comparison to your monthly income. If your DTI is less, it means you have lesser debts. This is ideal for auto lenders because it means you will be able to make payments easily. So, try and keep your DTI below 40%.


When a third party trusts you in financial matters, it automatically increases the lender’s faith. So, ask your parents or anyone you know to co-sign your car financing contract.

Down Payment

You can reduce the car loan amount by making a down payment of at least 10% of the car cost. If you do so, the lender will come to know about your steady economic condition. This will help him in approving your zero credit auto loan application form.

You can definitely turn the tables and become a car owner. Convince the lender that you are ready to assume the responsibility of a car loan. Be persuasive and make him understand the importance of car in your life. If you do, student auto loans won’t remain a dream. It will become a reality!

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Rapid Car Loans can help you buy the automobile of your choice. Get quick approval on student auto loans even when you have no credit history. Apply now!

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