Buyer Beware: Tips for Auto Loans

College is a time when many students purchase their first car. Not surprisingly, college students also tend to have below-average credit scores and credit histories. This makes college students prime targets for predatory lending and bad auto loans!

Having a short credit history or low credit score makes obtaining an auto loan difficult but not impossible. There are plenty of lenders willing to offer auto loans to students with such credit, however, the terms of those loans are usually very unfavorable.

Because a financing contract is like any other legally-binding contract, a person must repay an auto loan on whatever terms they signed and agreed to. So the best thing a student can do before car shopping is to educate themselves on auto loans and which loans not to sign.

Interest Rates

It is common knowledge that lower interest rates are better than higher interest rates. But students should know they have some power in negotiating lower interest rates and should be shopping around to compare rates from different lenders.

A simple illustration to highlight the importance of interest:

California Law Highlight: Employer Use of Social Media

California became one of the first states in the country to enact a law prohibiting employers and universities from demanding a person's social media username and password.

What is known as the Social Media Privacy Act is actually comprised of two different laws signed by Governor Brown in 2012 and enacted on January 1, 2013

Employers: California Assembly Bill 1844 prohibits a private employer from requiring or even requesting an employee or job applicant's social media usernames and passwords.  This is meant to protect your privacy from snooping employers (or prospective employers!) who may be looking for information about you beyond your resume.

Additionally, the law prohibits an employer from firing, disciplining, threatening to fire or discipline, or otherwise retaliating against an employee who asserts their rights under this law.

Please note! Any information a person has on a social media website that is viewable by the general public is still fair game. Employers may still use whatever information they can find about a person by just searching them on the internet. This law is meant to only stop employers from requesting access to private accounts.