He and his brother, Taxi Driver (1976) screenwriter Paul Schrader, were born in Grand Rapids, Michigan.

Their family, of the Dutch Calvinist religious sect, forbade them to see any movies in their youth. Paul was quoted as saying, "That was a church edict. What they called worldly amusements were prohibited."

It wasn't until he was in college in the 1960s that Schrader saw his first movie.

Living in Japan in the 1960s and 1970s, Schrader taught American literature to Japanese students.

His first film, The Yakuza (1974), was co-written with his brother Paul.