Gone are the days of the weekly allowance, borrowing the minivan from Dad (while wishing he would buy something other than a minivan), and simply reaching into a fully-stocked refrigerator for a snack. Yes, you are a full-fledged adult now who must earn their own paycheck, fill their own fridge, and find their own form of transportation. And it feels good. There’s just one hitch. Getting your own form of transportation costs more money than you have saved. You need your very own loan. And you need to get it without your parents. 
Improve Your Loan Worthiness
It is important to bear in mind that being entrusted with a loan or any other form of credit is a privilege, not a right–and, as a privilege, it must be earned. (Sorry for sounding all authoritative and parental, but this is the reality). You need to show that you are worthy of the responsibilities associated with borrowing someone else’s money. Here are a few things that you can do before applying for your loan:
- Have a Bank Account or Two. Opening up a bank account will not only help you establish a relationship with a financial institution, but it will also enable you to show a degree of financial responsibility. Operating a checking account, for instance, will show that you can manage your funds without going into overdraft or writing NSF checks. A savings account will demonstrate that you are committed to creating a nest egg. Having one of each is even better.
- Get a Job. In order to secure a loan, you need to show that you have a means of paying it back. This means acquiring a reliable source of income. Holding down the same job for an extended period of time illustrates that you have a degree of stability and that you are able to perform your responsibilities to your employer’s satisfaction.
- Have a Down Payment. Saving up a substantial down payment shows that you possess discipline–a desirable quality for a borrower to have. It also means that you will be borrowing a lower sum, which will equate to lower payments and/or a shorter term. Furthermore, by plunking down a chunk of your own hard-earned cash, you are showing lenders that you are less likely to renege on the loan. “How to Get a Car Loan with No Credit or Bad Credit” recommends that you save up at least 10 to 20 percent of the car’s total cost.
- Don’t go “Credit Crazy.” If you have a wallet filled with credit cards, you could have a problem. As “Are You Ready for a Car Loan?” warns, a lender will look at your debt-to-income ratio in order to calculate your ability to pay the loan back and if you have too much debt, you are unlikely to be approved. Get a handle on your finances and pay down debts before seeking more credit.
Make Them Comfortable
This may seem like an odd thing to say. After all, you’re the customer, right? Shouldn’t they be striving to put you at ease? Well, to a certain degree, that is true. But, unfortunately, they have what you need–not the other way around–so you need to provide them with the assurance that you are the right person to entrust with a loan.
- Create a Good Impression. It is often said that you only get one chance to make a first impression, so you’d better make sure it’s a good one. Investopedia’s “Getting a Loan Without Your Parents” stresses the importance of dressing professionally for your appointment with your potential lender, stating that “if you want to be treated like a professional, dress like one.”
- Prepare Your Proof. It is also important to arrive at your loan appointment completely prepared. Bring the required documents such as your bank statement, paid copies of your re-occurring bills like utilities and credit cards, proof of employment, and current balances on other borrowings such as your student loan.
