Can Student Loans Keep You from Buying a Car on Credit?
The student loan crisis in America continues to worsen with every passing year. As of right now, federal student loans across the country add up to over $1.5 trillion, with over 44 million borrowers. To make matters worse, student loans are often obtained for schools that are not concerned at all with the rising costs of college.
Many people are not able to repay their student loans according to the 10 or 20 year repayment plans. In fact, over 5.2 million borrowers are in default on their federal student loans, and many more are in forbearance or simply behind on payments. For many of the people getting assistance with their student loans, their adjusted payments are so little that no real progress is made on decreasing the amount of the debt.
But what does all of this mean for the credit of over 44 million people? Student loans, especially if behind or in default, can greatly negatively impact your credit. These student loans can keep you from getting any type of credit, including credit for buying a car. Even if your student loans are listed in repayment status and paid up to date, if you have a large amount of student loans, it increases your debt to income ratio, which can also play a role in obtaining credit.
Thankfully, there are some ways that you can get credit to buy a car even if you have massive student loan debt. Car Credit, Inc. in Tampa is one of the best options you have for getting a bad credit car loan. Our finance department works with people with all levels of credit to make sure that you can get a reliable vehicle.
Your credit shouldn’t keep you from having a reliable car to get to and from work, school, or errands for the family. Contact us today for more information or to apply for credit.