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Can I use a college loan to get a car so I don't have to pay anything until after college?
So here's the deal:
I am 100% covered for tuition at my school with payments and everything and do not technically need to take out a loan for tuition or room and board. I live about 30min away from school and even though I am rooming there, I still would like a car to just get around and go home if I want or need to. So, the reason why I would like to take out a college loan as opposed to just a regular loan is that I would like to keep the payments off until after I get out of school since I am clearly not working. What are my options here?
- 1 decade agoFavorite Answer
Car loans for people with bad credit score are mainly given as two options i.e. secured and unsecured. Under a secured loan, the car or any other collateral needs to be pledged as security with the lender. Secured loans often carry a lower rate of interest and are also easily approved due to the collateral being placed. Unsecured loans for cars generally have a higher rate of interest as there is no collateral and hence<!--the risk to the lender is more. Both these loans are generally provided for a time ranging between 5-7 years. Clearing some of your old debts can improve your credit score, which may in turn fetch you lower interest rates when you are applying for auto loans.
A person may incur a poor credit score due to many reasons such as accumulated arrears, defaults, repayments that have been omitted and so on. With the advent of bad credit auto loans, even those with a not so good-->credit history are being provided with the opportunity to purchase a vehicle. A down payment is however required while acquiring these funding options. Refinance car loans are also being provided by some lenders even for those with a poor credit score.
- 1 decade ago
The wisest thing to do is flip the script,instead of paying tuition.Convince the payer you have a good deal for getting to school.For a certain amount,then state you are willing to use your lunch money for gas.