Many international students believe they can't finance a car unless they have a positive credit history or a Social Security Number. In fact, certain types of car dealerships may exploit this rumor by offering high-cost loans to international students who believe they don't have any other choice.
While it's true that most major financial institutions like banks and loan companies require a solid credit history and Social Security number before they offer to finance a vehicle, international students don't have to settle for high fees and interest rates.
Here are two things an international student should take care of before they can get financed for an auto loan.
U.S. Driver's License
It's important for international students to get a U.S. driver's license. The local Department of Motor Vehicles (DMV) handles applications. The Student Exchange Visitor Program (SEVP) fact sheet is a reliable and up-to-date source of information about how to get a U.S. driver's license. Certain lenders also offer to finance international students who have a U.S. learner's permit.
Lenders require applicants to have auto insurance. Each state has its own minimum auto insurance requirements. It's important to get multiple quotes, as rates vary widely from one insurance company to the next.
Get a Loan Without Credit History
International students who don't have a credit history can get a car loan if they work with a company that has experience in this area of financing. It's natural to feel concerned about the potentially high cost of financing a vehicle without a Social Security number or credit history.
Boro uses personal information like educational background and overall financial status to determine loan eligibility. After approval, Boro begins reporting account activity to the credit bureaus, so international students can start building a positive credit history right away.
The application process takes about 10 minutes and the company provides applicants with a decision within two business days. With Boro, international students don't need a co-signer to apply for financing. Flexible terms and payment plans based on estimated graduation dates and customized to meet the needs of the individual student make managing payments easy.
Getting a car loan as an international student without a Social Security number and credit history doesn't have to be a frustrating experience.