Teenagers might want to get a new car.
But is that possible at such an age? Would lenders agree to give the car loans to teenagers?
The approval of the car loans depends on several factors – employment, credit scores, and credit history. There are some lenders who would not agree to give you the loans if you do not have a long history.
Remember that you cannot be titled as a creditworthy person just because you are able to show a decent score.
Lenders would also want to have a look at the credit history – like they would see how many lenders dealt with you earlier and how you have paid them. If you had paid all lenders on time then the car loans would be easily given to you.
Many people also ask me if its possible to get the car loans if they have a high income but not a long history. This is particularly applicable to the case of a teenager. A teenager might have got a high paying job but lenders would still be reluctant to give the auto loans if there is not enough credit history.
Are there options for teenagers to get the car loans?
Some of the options available to the teenagers to get approved for the car loans would be:
- Establish the credit history and then apply for the auto loans – I preferred this method when I was young. That was because I did not know any cosigners. My parents also had a bad credit score and i could not ask them.
- Get a cosigner – this is another option for teenagers to get the car loans. Cosigners must be a creditworthy person. This is a primary factor in determining a good cosigner.