For graduates, part of entering the real world is making sure they have a ride. Main Street says that many post-grad lives will require a car, although many graduates have little to no credit and even smaller amounts of savings.
While choosing the style of car can be important to a 22-year-old, the news source suggests that car financing is more important. Buyers should use their one free credit report per year so they can see what a lender sees when deciding to give out a new or used car loan. They should be prepared to put down a few thousand dollars or pay a higher interest rate if their credit history is on the short side.
Buyers should know how much they are able to spend. Young car owners should not spend more than 15 percent of their monthly income on car payments. Many websites offer a car payment calculator to figure out payments and interest rates. Applying for a car loan online is fast and easy, and even those with little or no credit history can find themselves approved.