Can a new employee get an auto loan?

Many auto lenders have minimum employment requirements. Depending on where your credit score falls on the spectrum, your work history could be a deciding factor in getting a car loan approved.

New to work

A car lender for bad credit is likely to require that you have been in your current job for about six months to a year. If this is your first job, they may require you to hold that job for a year before being considered for funding.

However, there are a few exceptions to this rule. Suppose you are a nurse and have recently started working at another hospital. Although this is technically a new job because you work for a different employer, it is still the same field of work.

Lenders understand that people can change jobs from time to time for a variety of reasons, whether it’s because of life changes or moving to a new area. Situations like this can be looked at on a case-by-case basis, and a bad credit auto lender can consider scenarios like this.

If you’ve just landed a brand new job or a job in a different field, it’s generally recommended that you just give yourself a little extra time before applying for funding. You can definitely give it a try, as all lenders vary in their specific requirements, but your chances of getting approved increase the longer you’ve been in the same job for a long time, regardless of your credit rating.

Work history and bad credit

Some direct lenders may be more flexible on work history requirements, but bad credit auto lenders may not consider you for financing unless you’ve been in the same job for at least a year. Lenders vary in their specific stipulations, but in general they prefer that you have been in your current job for a period of time.

However, with a lower credit score, it’s likely that a lender will look at your employment history with a fine tooth comb.

If you have a lower credit score, you will likely have a better chance of financing with a subprime lender. These lenders help borrowers who have credit issues such as repo, bankruptcy, no credit, or bad credit.

Lenders at risk look for stability when applying for a car loan. This means that they look at factors outside of your poor credit, such as how long you’ve lived in the same area and your overall work history. Many subprime lenders assess your work history for three years and require that you have no more than 30 day gaps between jobs.

Auto loans for bad credit

When applying for funding, be sure to be upfront about your work history and your situation. Your credit reports may also contain information about your employment history. An auto lender can even call your current employer to verify your employment status. And if you have bad credit, it’s a good idea to start with a lender who can help you with your credit.

To find a subprime lender, start by looking for a special finance dealer who has signed up with subprime lenders. These dealers aren’t everywhere, and they’re not always the easiest to spot in a crowd. Auto Express Credit wants to help you find one near you.

We’ve been around for over 20 years, and we match borrowers to dealerships with the lending resources they need. To start your search, fill out our car loan application form. We will search for a reseller in your area, at no cost or obligation. Start now!

Source link

About Andrew Miller

Check Also

2021 CrossCountry Mortgage Review | Mortgage reports

Overview Founded in 2003, CrossCountry is one of many companies that have entered the mortgage …