Many of us have heard the phrase “Sweet Seventeen” which usually refers to the last year before entering adulthood. “Sweet Seventeen” might be a joyful occasion but if you are considering a loan at the age of 17 then your joy might turn into misery. If you are below 18 years old then your loan options will be very limited. Depending on the state where you live, you might have to clear the minimum age requirement to obtain a car loan or personal loan. However, it is not impossible to get a loan at 17; you just have to go through some additional legwork.
In the USA, you have to be at least 18 years old to legally sign a loan contract. If you don’t turn 18 years old then you will be considered as a minor by law therefore, you won’t be able to enter into a contractual agreement with a lender. In this type of situation, your only way is the adult co-signer. It’s basically like an adult took the loan and let you use the money.
Jump To A Section
- 1 How To Get A Loan When You Are 17
- 2 How To Compare The Lenders Who Provide Loan To Minors
- 3 Loan Option For 17 Years Old
- 4 FAQs About Loans For 17-Year-Olds | How To Get A Loan At 17
How To Get A Loan When You Are 17
If you’re wondering how to get a loan at 17 then here are some strategies that are worth trying. Let’s check them out!
1. Find Lenders that Provide Minor Loan
If you are a minor then there are many other ways available to get the loan at 17. You have to find out which bank or credit union offers loans with a co-signer. Moreover, there are many lenders available that offer different options for personal and auto loans to a minor. For example, People’s Credit Union has a “Credit Builder’s Loan.” This loan helps young people build a good credit score and history as well as meet financial requirements. Minors will need a parent or guardian to co-sign for the loan.
2. Show Savings Or Offer Deposit
AS a minor when you are trying to get a loan, try to Minors will need a parent or guardian to co-sign for the loan. If you can submit a big deposit along with a cosigner then the lenders might approve your loan application. Moreover, you can offer a deposit against your loan application. This trick works great for people who are applying for a loan at 17.
3. Provide A Recommendation Later
If possible, then you can submit a recommendation later with your loan application. This type of document helps people who are minors to get approved for their loan application. This is because a recommendation from the employee/supervisor stat that the security of your employment/loan and will help your loan application form.
4. Add A Creditworthy Cosigner
If you are 17 years old then you can try to add a creditworthy family member or friend as a cosigner to your loan application. This is a very effective way of approving a loan application when you are a minor. However, you should keep in mind that if you miss payments or make late payments then the cosigner’s credit score will be damaged.
How To Compare The Lenders Who Provide Loan To Minors
If you are not 18 years old then you will find it very difficult to find a competitive loan. However, how many lenders you find, you should compare all the available options to find the best lender for you. Below are some features that you should consider before choosing a lender. Let’s check them out!
1. Interest: Check the interest rate and other variables before choosing a loan for you. Find out the difference between other similar products and pick one that best suits you.
2. Loan Amounts: Different lenders offer various minimum and maximum loan amounts. Therefore, it is very important to check the loan amount. It will help you understand what you can afford to repay.
3. Fees: Various lenders charge different types of fees for the loans. You have to check the landers to find out the fees that you would be charged. Some common fees are establishment fees, monthly fees, early repayment fees, etc. Make sure what fees you have to pay so that you can minimize the cost.
4. Other Features: Check if the lenders offer other facilities that will come with your loan. Many lenders offer various facilities like extra repayments. This type of facility is an offset facility or extended warranty for your loan.
Loan Option For 17 Years Old
If you are a minor then student loans are the easiest loans to get. There are two types of student loans available. They are –
1. Federal Student Loans
2. Private Student Loans
1. Federal Student Loans
Depending on which school or college you study, your school may include loans offered by the federal government. In order to get the federal student loan, you have to fulfill some requirements like U.S. citizenship, enrollment or acceptance for enrollment in a qualified degree program, a minimum of half-time enrollment and satisfactory academic performance, etc. Moreover, you have to qualify to receive a college/school degree by presenting a high school diploma or proving a high school certificate. There is no minimum age restriction available for federal student loans but male students must register with the Selective Service between the ages of 18 and 25. If you have fulfilled the requirements but your age is below 18 then you will need a cosigner to apply for a federal student loan. Federal student loans have lower interest rates than private student loans. Under the U.S. Department of Education Direct Loan programs, you can also choose from Direct Subsidized Loans depending on your financial need. In order to apply for the loan, you have to fill out a Free Application for Federal Student Aid.
2. Private Student Loans
As a minor, you can apply for a private student loan through banks, credit unions, etc. However, student loans through nongovernmental private lending institutions will require a cosigner. Moreover, depending on your age, you might need an established credit history and your interest rate should be between 3 and 13 percent depending on the credit score.
FAQs About Loans For 17-Year-Olds | How To Get A Loan At 17
Can You Get A Personal Loan At 17?
Yes, you can get a personal loan at 17. Many banks, credit unions, and other financial institutes offer personal loans to a minor. You have to include your parent or family member as a co-signer to get the personal loan at 17.
What Is The Minimum Legal Age To Get A Loan In The USA?
In the USA, the minimum legal age to sign a loan contract is 18. If you are below 18 years old then you have to include a co-signer to get the loan as a minor.
Can A 17-Year-Old Get A Credit Card?
No, a 17-year-old can’t get a credit card because according to the law anyone below the age of 18 is considered a minor and a minor can’t sign a loan agreement.
Can Kids Under 18 Have A Credit Score?
No, kids under 18 years can’t have a credit score. This is because the minors can’t have their own credit card so there is no chance of kids under 18 having a credit score.
Can I Have A Debit Card At 17?
Yes, you can have a debit card at 17. But as you are a minor then there must be a parent or guardian on the account who is more than 18 years old.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.