Buy Here Pay Here Harrisburg, PA

Just about every student needs a car. Unfortunately, for most students, getting an auto loan while still in school isn't always easy. Most traditional banks are not willing to approve a car loan for a student that does not have much of an income or a lengthy credit history, but many students can qualify for student auto loans. Student auto loans are different than conventional auto financing in a number of ways. One of the biggest differences is that there are certain basic requirements that must be met in order to qualify for this type of loan loan. Here is a basic background on those requirements: The first of the basics is income. While there are a couple of banks that will consider your application with a $1,300 gross monthly income, most lenders that offer student auto loans will require that you have an income of at least $1,500 per month (gross) if your credit score is less than 640. Gross income, as you already may know, is the money that you earn before taxes are taken out of your check. Student auto loan lenders also look at the car loan payment compared to your income, this is called the payment to income, or PTI ratio. Typically, this ratio for students should be less than 15%. With the use of any auto financing payment calculator, you can determin how much you can borrow to remain under this ratio. Even with a FICO score higher than 640, most student auto loans require that the monthly gross income has to be close to this so that you can afford the car payment and full coverage auto insurance. If you are self employed, the situation gets more complicated. Self employed individuals do not receive a W-2 wage and tax statement from their employers at the end of the year. Instead, the employer furnishes them with a 1099-MISC form. As a self-employed individual, you will need to prove income from the previous three years with income tax statements that have been professionally prepared. In some instances, lenders will require bank records in addition to these tax forms in order to approve student auto loans. The next point that will be covered is that of age. By law, in order to qualify for student auto loans, you must be at least 18 years old. Anyone younger than 18 years old cannot apply for a loan because they cannot legally enter into a contract. Finally, most lenders that offer student auto loans look for a 3 year job history with no more than 2 jobs during that 3 year time span. Also, you will need to provide the lender with proof of residency. This can be accomplished with utility bills that contain your name and your current address as well as a phone bill (land line or cell) with your name and your current address.