Car Financing with a New Job
Car buyers with credit problems need to be aware of how their employment circumstances can affect whether or not they will qualify for an auto loan
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Our experience
Here at Auto Credit Express, we’ve spent the last twenty years helping car buyers with credit issues find dealers that will treat them with respect while offering them their best opportunity for auto loan approvals.
It has also given us an understanding of the typical requirements of most subprime auto lenders. As we’ve pointed out in the past, this isn’t meant to discourage anyone from applying for a bad credit auto loan. We simply want to make it clear that even these high risk lenders have certain requirements that need to be met.
Employment requirements
It’s easier to understand the reason for employment requirements if you know the three basic characteristics these lenders look for – ability, stability and willingness to pay.
• Ability – does the applicant make enough money comfortably to pay his/her bills plus a car loan and auto insurance
• Stability – does the applicant have an established and stable source of income
• Willingness to pay – is the applicant’s current credit situation a result of situational (resulting from a single event such as job loss or a medical event) or habitual (never paying any bills on time) bad credit
When considering an applicant’s employment situation, most high-risk lenders look closely at both ability and stability.
In the case of employment, stability and ability go hand in hand. This means that most poor credit lenders will look for a minimum of three to four months of continuous employment. We should also point out that longer job time indicates better employment stability. Everything else being equal,
the longer someone has been on the job, the better that person will be viewed, as a risk, by lenders.
Having at least ninety to one hundred days on the job helps these lenders verify an applicant’s actual income level. In addition, it also allows them to see if an hourly employee is consistently working overtime and whether or not all or a portion of this income can be included in their income calculations.
One last thing: Short job tenure – less than three to four months with a current employer – can be offset by situations such as switching employers for the opportunity of higher income or employment with different companies in the same field. Other circumstances that can, to a certain extent, offset shorter employment time include a lengthy period of residence in the same area and/or home ownership.
The Bottom Line
If you have a new job, poor credit and need a car, you should know that, when it comes to employment, most high-risk lenders look for both job and income stability. While there are no hard and fast rules, three to four months of job time is usually considered to be a minimum, although certain shortcomings can sometimes be offset by other stability factors.
One more thing to keep in mind: if you have past car credit issues, we want you to know that Auto Credit Express specializes in placing applicants with those franchised new car dealers that can offer you the best chance for approved auto loans.
So if you’re ready to establish your auto credit, you can begin now by filling out our online auto loans application.
It has also given us an understanding of the typical requirements of most subprime auto lenders. As we’ve pointed out in the past, this isn’t meant to discourage anyone from applying for a bad credit auto loan. We simply want to make it clear that even these high risk lenders have certain requirements that need to be met.
Employment requirements
It’s easier to understand the reason for employment requirements if you know the three basic characteristics these lenders look for – ability, stability and willingness to pay.
• Ability – does the applicant make enough money comfortably to pay his/her bills plus a car loan and auto insurance
• Stability – does the applicant have an established and stable source of income
• Willingness to pay – is the applicant’s current credit situation a result of situational (resulting from a single event such as job loss or a medical event) or habitual (never paying any bills on time) bad credit
• Stability – does the applicant have an established and stable source of income
• Willingness to pay – is the applicant’s current credit situation a result of situational (resulting from a single event such as job loss or a medical event) or habitual (never paying any bills on time) bad credit
When considering an applicant’s employment situation, most high-risk lenders look closely at both ability and stability.
In the case of employment, stability and ability go hand in hand. This means that most poor credit lenders will look for a minimum of three to four months of continuous employment. We should also point out that longer job time indicates better employment stability. Everything else being equal,
the longer someone has been on the job, the better that person will be viewed, as a risk, by lenders.
the longer someone has been on the job, the better that person will be viewed, as a risk, by lenders.
Having at least ninety to one hundred days on the job helps these lenders verify an applicant’s actual income level. In addition, it also allows them to see if an hourly employee is consistently working overtime and whether or not all or a portion of this income can be included in their income calculations.
One last thing: Short job tenure – less than three to four months with a current employer – can be offset by situations such as switching employers for the opportunity of higher income or employment with different companies in the same field. Other circumstances that can, to a certain extent, offset shorter employment time include a lengthy period of residence in the same area and/or home ownership.
The Bottom Line
If you have a new job, poor credit and need a car, you should know that, when it comes to employment, most high-risk lenders look for both job and income stability. While there are no hard and fast rules, three to four months of job time is usually considered to be a minimum, although certain shortcomings can sometimes be offset by other stability factors.
One more thing to keep in mind: if you have past car credit issues, we want you to know that Auto Credit Express specializes in placing applicants with those franchised new car dealers that can offer you the best chance for approved auto loans.
So if you’re ready to establish your auto credit, you can begin now by filling out our online auto loans application.
