Life comes at you fast, and before you know it, you’re in a situation that makes you feel like you’re in over your head. Whether you’re starting a family, going to school, or just getting your first loan, life can seem daunting and fast-paced, especially when it comes to finances. When you’re attending school and have car payments to make, you don’t have any room for errors or mistakes. Here’s the best way to continue making car payments or other big payments while going to school.
Work on Building Your Credit
There are many different ways you can build your credit, and the best way doesn’t involve paying a company to settle your debts. Building your credit is as simple as paying your bills on time, having a good, long credit history and not getting close to your credit limit if you have one. Although it may be tempting, you should only apply for credit you need, instead of accepting the highest credit limit the lender will approve. Once you improve your credit score at least 15-20 points, you can consider refinancing your loan.
Create a Budget
You need to create a reasonable budget upfront. If you need help, you can use a car loan calculator to help you determine what you can afford. Your budget should include your current expenses, the cost of the loan, the amount of money you currently make, and the amount of the car payment on a monthly basis.
Get a Cosigner
If someone is willing to be your cosigner, make sure they have a good credit rating. Keep in mind, the cosigner accepts responsibility of paying the auto loan if you default on payments. A cosigner who has a good credit rating can lower the amount of your down payment, as well as the amount of your monthly payments.
Make Your Down Payment
Your down payment can be a trade-in, cash, or any other method the dealership accepts. If you are making your down payment with cash, put down as much money as possible to decrease the amount of your monthly payments. A Ford dealership might be able to offer something different than a used car dealer so make sure you know your options going in.
Change Your Living Situation
You can remove some of your financial burden by getting a roommate or moving back in with your parents. These situations may not be ideal for you, but your goal is to save money while continuing to make your car payments. Big expenses take a toll, so make sure your lifestyle can help you make them on time.
Getting a car loan is not as difficult as it may seem. Going to school and paying for a car is difficult, but not impossible. Following these tips to get a car loan will help make your financial life a little easier.
Eileen O’Shanassy is a freelance writer and blogger based out of Flagstaff, AZ. She writes on a variety of topics and loves to research and write. She enjoys baking, biking, and kayaking. Check out her Twitter @eileenoshanassy.