Many loan platforms in the US offer car loans for US students. In this article, we will discuss some of the best platforms in the United States that provide car loans to students. Let’s get started!
Factors To Consider Before Opting For A Car Loan.
If you are considering choosing a car loan platform, here are the factors you should carefully consider.
- Credit Score
- Annual Percentage Rate
- Car Loan Term Length
- Car Loan Down Payment.
- Cosigner
Credit Score
To secure a car loan as a US student, you need to ensure that your credit score is good enough to boost your eligibility. Poor credit score and credit history can affect your eligibility status, including rejected applications from other platforms.
Annual Percentage Rate
For all the car loan providers mentioned in this article in order of the best to the least, they all have similar annual percentage rates. The average car loan interest rate is 4.33% for a new car and 8.63% for a used car. These statistics are from the Experian state of the automotive finance marketreport for the second quarter of 2022. The credit score of these car loan platforms is high, 780 and above, if you can score this high you will have the best shot to get cars at a rate below 3%.
Car Loan Term Length
The car loan term length is when you are expected to clear your debts. Some platforms give 60 months, while some give 72 months. However, the longer the term, the higher the APR. Hence, choose the car loan term length most convenient for you.
Car Loan Down Payment
This can also be called an origination fee. This is the payment you make to the platform before loan issuance. This way, the platform will be confident that you are serious about the loan.
Cosigner
A cosigner is more like a guarantor or sureties. Some platforms require a cosigner, while others don’t. Some platforms that require cosigners offer cosigner release, while others do not. The onus is always on you to choose the one that suits you.
10 Car Loan Providers For Students In The United States
- Mpower Financing
- Prodigy financing
- Citizens One
- Ascent student loan
- Discover
- College Ave
- Sallie Mae
- Credible
- SoFi
- Landkey
1. Mpower Financing
This is one of the most popular platforms offering student car loans in the United States. MPOWER private students have been provided for international undergraduates, mainly in the United States with two years of graduating or when starting a two-year program at one of 350 approved universities in the United States or Canada. This platform makes it easier for students to access loans. Students can make only interest payments when in school during the first six months of their stay and six months after their visit. This means that the MPOWER platform is effective and efficient. After this period, you can make total repayments with interest.
Pros
- It has different interest rate discounts.
- You do not need a cosigner to apply.
- No rigorous credit check is involved.
Cons
- This platform has a higher interest rate when compared with other platforms.
- It offers a loan limit of $25, 000 per year.
2. Prodigy Financing
This is one of the best platforms that give car loans to students in the United States. They offer private loans to students without a designer. Still, this loan is only available to students seeking a graduate degree in business, science, technology, engineering, math, law, and other health courses. This loan gives students three repayment openings, and your repayments are automatically deferred while in school, but in addition, you can make payments anytime without penalties or fees. This loan platform is better than most others because there are no application or repayment fees. The only charge that provides charges is a 5% administration fee on every loan someone takes from the company.
Pros
- No cosigner is needed for the application.
- The loan term can last as long as 20 years.
- You can borrow up to 100% of the attendance cost.
Cons
- You need to pay an administrative fee of 5%
- There is no discharge if the borrower dies.
- It also only offers variable loan rates.
3. Citizens One
This platform is among the best platforms for car loans for US students. This platform offers loans to international students. To be eligible for this loan, you have to have a creditworthy cosigner who is a U.S. citizen, or you must be a permanent resident of the country. This is a unique platform, as there are no application, origination, or prepayment fees. If you’re eligible to borrow from this platform, you are at liberty to choose from four in-school repayment options and their different terms. The lenders of this loan offer medical residency and another type of loan called a bar loan which makes it more affordable for graduate students who have a co-signer.
Pros
- There are multiple repayment term periods.
- There is no prepayment fee or origination fee.
- For eligible borrowers, there is a payment discount.
Cons
- You need a cosigner
- There is no option for prequalification.
- There is a penalty for late payment.
- It needs a high minimum amount to refinance.
- A good credit score is essential.
4. Ascent Student Loan
This is one of the best platforms for car loans for US students. Ascent student loans are available to international students. Still, to be eligible for this loan, you must have a consignor, and you have to be a United state citizen or permanent resident of the country. This is a unique type of loan platform as there are no application, origination, or prepayment fees, and you can choose from three of the in-school repayment options and six repayment terms, up to 15 years for a loan with fixed rates and up to 20 years for variable rate loans. This makes ascent student loans one of the best loan platforms for car loans for US students.
Pros
- You can qualify for a 1% cashback.
- A cashback graduation reward is also available.
- There is also deferment and forbearance.
Cons
- Non-cosigned loans are available to college juniors, seniors, and graduates only.
- There is limited outcomes-based eligibility
- There are a few repayment terms.
5. Discover
This car loan platform in the United States is one of the best car loan platforms. It offers private student loans to international students who are attending any eligible U.S. college or university. But you must give a creditworthy cosigner who is a United state citizen or permanent resident of the country. Discover loan platforms are fee-free, and students are at liberty to choose any of the four in-school repayment options but only one term. Discover is one of the only car loan platforms offering lenders multiyear approval to students with or without SSNs. This is very helpful for students as it helps them to avoid multiple hard credit inquiries so they can continue to build credit.
Pros
- No origination fee is needed.
- There is the availability of a multiyear option.
- There are no late payment charges.
- If you get at least a 3.0 GPA, you stand a chance to get rewarded with 1% on every new loan.
Cons
- , Unlike some platforms, there is no cosigner release.
- There is a limited loan term.
6. College Ave
This is one of the best platforms that offer car loans for US students. It ranks as one of the best due to its comprehensive options available for students during repayments. There are also fewer fees and no prepayment penalties. This platform also considers plans for borrowers riding financial hardship.
Pros
- There are flexible repayment plans and terms.
- They offer different valuable online resources.
- After half of the repayment time has elapsed, there is a cosign release.
Cons
- The forbearance period is concise–3-6 months.
- Since it is a marketplace, there is restricted or limited information eligibility.
7. Sallie Mae
This is one of the best platforms that offer car loans to students. Borrowers can make interest-only payments for a year, usually after graduation or up to 48 months after the moratorium, if they participate in an internship, clerkship, or residency program. This loan is available for students with less than half-time enrollment. One thing with student car loans is that you must be a student.
Pros
- No prepayment fee is required.
- Part-time students are also eligible.
- You also have four months’ Chegg with no origination fee.
Cons
- They are not usually available on Saturdays and Sundays.
- The APRs are relatively high when compared to other platforms.
- There is only one term length for graduate students.
- And there is a 5% late payment penalty.
8. Credible
This loan platform allows borrowers to compare multiple lenders with only one application. This makes it one of the best platforms for car loans for US students. There are not many fees on this platform, there are no origination fees or prepayment penalties, and they equally guarantee low-interest rates. This is why most students rush for this loan platform.
Pros
- There are multiple or wide ranges of repayment options.
- You can prequalify with different companies or platforms.
- You are not required to pay origination fees.
Cons
- There is no specific detail. They vary among lending platforms.
- This platform does not search all lending platforms.
9. SoFi
When it comes to the best platform that offers car loans for US students, SoFI comes to mind. There are no extra fees attached and no discounts. There are lots of membership benefits that make it one of the best options when it comes to student car loans. In addition, they reward points that can be used to pay eligible student loans. If you’re a student enrolled in a qualified internship, you can quickly request a deferment for up to 54 months.
Pros
- If you have a SoFi member cosigner, there is an avenue for discounts.
- An origination or application fee is not needed.
- There are no late charges, and there is unemployment protection.
Cons
- There is a high APR which could be frustrating.
- There are a lot of bottlenecks when refinancing.
10. LendKey
Many platforms offer car loans to United States students, and this platform called LendKey is one of them. LendKey made it to our list because they partner with an extensive network of loan providers to serve students better. They partner with banks, credit unions, and community banks and also service loans for students.
Pros
- There are no application fees
- There is an option for cosigning.
- The process of borrowing is simple.
Cons
- Requirements vary; hence, there may be additional requirements.
- Refinancing is complicated due to limitations.
Conclusion
We have come to the end of this article. We have listed 10 good platforms that offer car loans for US students. We believe you have benefited from this article. Go ahead and make your choice of venue. We wish you the best in your study!